Procter & Gamble announced Thursday that it plans to lay off 7,000 workers over the next two years, roughly 15% of its non-manufacturing workforce.
In a statement, the company said it’s trying to become more efficient and reduce costs as it faces tougher competition.
“There will also be some changes aimed at making the company more flexible and effective,” the statement read. “That includes broader job roles, smaller teams, more meaningful work, and a bigger push toward using digital tools and automation.”
The company didn’t say which specific locations or teams would be affected by the layoffs.
Procter & Gamble, which owns brands like Tide, Bounty, and Pampers, currently has around 108,000 employees worldwide.
Besides cutting jobs, the company also said it’s looking at possible changes to its brand lineup, which could mean selling off some brands. It didn’t name which ones.
The company said, “We will share more details in the coming months.” A P&G spokesperson pointed them to the company’s online statement. P&G shares rose modestly in pre-market trading — about 0.1%.
In its April earnings report, the company reported a dip in sales growth, blaming a tough economic climate and global issues. Net sales for the third quarter came in at $19.8 billion, which is 2% lower than the same time last year.
The company’s next earnings announcement is scheduled for July 29.
These types of job cuts aren’t unique to Procter & Gamble. Many companies across different industries are scaling back due to shifting consumer habits and economic uncertainty.
“Businesses are tightening their budgets, slowing down hiring, and issuing more layoff notices,” said Andrew Challenger, senior VP at outplacement firm Challenger, Gray & Christmas.
According to the firm, job cuts in the US were 47% higher compared to May last year.
