Procter & Gamble Cuts 7,000 Jobs, Blames Economic Soap Opera

Procter & Gamble Cuts 7,000 Jobs, Blames Economic Soap Opera

4 minute read
Published: 6/7/2025

Procter & Gamble has announced plans to cut 7,000 jobs, or 15% of its non-manufacturing workforce, as part of a costly restructuring plan aimed at boosting productivity amid rising tariffs and dwindling sales growth.

The decision to slice jobs comes as P&G grapples with a perfect storm of shrinking sales and soaring tariff-related costs, leading the company to not only streamline its workforce but also rethink its entire product lineup. With an anticipated $600 million hit from tariffs looming in 2026 and an overall U.S. job-cutting trend on the rise, P&G’s move may leave more empty cubicles than decorative plants in their offices, as they aim for heightened efficiency through digitization while potentially passing costs onto consumers.

This restructuring sponge-drenched with layoffs isn't just a matter of subtracting employees from the balance sheet; it's a broader strategy to address ongoing financial challenges. Executives at P&G made it clear that they’re a bit like a reluctant contestant on a reality show – forced to make tough choices in a challenging environment where consumer spending seems to have taken a permanent vacation. It’s a situation that can only be described as a modern-day 'survival of the fittest'—albeit with less mud and more office politics.

As per P&G's intricate game plan, the company is not only cutting jobs but also considering exiting certain product categories and possibly divesting specific brands. One can only wonder what that means for the loyal customers hoping to see their favorite products remain afloat, particularly if those products happen to be standing on a shaky budget. A spokesperson stated, ‘We need to ensure our strategy is sustainable, so if that means saying goodbye to some brands, so be it.’ These might not be the heartfelt farewells one would expect at a retirement party, but more like a brisk business handshake.

The anticipated cuts, expected to hit between $1 billion and $1.6 billion before taxes, will give the company the ability to streamline operations and create broader roles with smaller teams. If that sounds a bit contradictory, welcome to modern corporate America where complexity is often the name of the game. As teams grow smaller, one can only assume that employees will have to get faster at mobile multitasking. If one of those tasks is figuring out who’s taking the last donut in the breakroom, good luck with that revolution in efficiency.

Meanwhile, the unfortunate reality is that overall U.S. job cuts were up by 47% in May compared to the same month last year, which could mean some rather tense conversations at water coolers across the nation. P&G isn’t alone in this predicament; the entire corporate ecosystem seems to be held hostage by economic uncertainties and changing consumer habits. Executives have cited these factors as influencing strategic decisions to respond to a market that feels unsettlingly like a game of musical chairs—with one significant difference: there are fewer chairs to sit on as time passes.

Within this restructuring mess, P&G is also bracing for the possibility of raising prices on certain products to alleviate the sting of tariffs. That leaves an interesting question for consumers: will the next bottle of shampoo come with a luxury tax just because it smells like lavender? For those who find the thought of shelling out more cash on hair care products vexing, this change may prompt them to experiment with DIY methods—after all, some might argue that a little vinegar can work wonders too.

Despite the challenges, the situation isn’t without some glimmers of hope. P&G’s digital transformation aims to leverage technology for more efficient operations, which suggests that the company is keen on using automation as a means to boost productivity. However, the focus on restructuring, which includes cutting 7,000 jobs and possibly exiting some product categories, raises questions about whether these changes will lead to true innovation or primarily serve as cost-cutting measures. Perhaps the next evolution of P&G products will come with their own applications and update notifications.

Ultimately, as Procter & Gamble navigates this tumultuous phase owed to higher tariffs and fluctuating consumer demand, we find ourselves on the verge of witnessing a corporate strategy that champions agility over stability. In that light, one can only wonder if the teams becoming smaller means more effective power lunches or merely tighter budgets on cupcakes at company meetings. Either way, it's a curious time in the corporate landscape, where even the titans of consumer goods are forced to rethink what it means to keep their brands afloat, all while understanding that the waters could get choppy indeed.