Please ensure Javascript is enabled for purposes of website accessibility
Procter & Gamble Slashes Workforce as Tariffs Drive Up Costs
gvw_ap_news
By Associated Press
Published 1 day ago on
June 5, 2025

The consumer goods giant faces mounting pressure from tariffs and declining consumer confidence in challenging economic times. (AP File)

Share

Procter & Gamble will cut up to 7,000 jobs over the next two years as the maker of Tide detergent and Pampers diapers implements a restructuring program at a time when tariffs are raising costs for American companies and consumers are growing anxious about the economy.

The job cuts, announced at the Deutsche Bank Consumer Conference in Paris on Thursday, make up approximately 6% of the company’s global workforce, or about 15% of its nonmanufacturing positions, said Chief Financial Officer Andre Schulten.

“This restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years,” Schulten said. “It does not, however, remove the near-term challenges that we currently face.”

Procter & Gamble, based in Cincinnati, had approximately 108,000 employees worldwide in June 2024.

Broader Restructuring Program Includes Product Cuts

The cuts are part of a broader restructuring program. Procter & Gamble will also end sales of some of its products in certain markets. Procter & Gamble said it will provide more details about that in July.

Like many companies, Procter & Gamble is dealing with American consumers who are worrying about their spending as they keep an eye on inflation.

Consumer Sentiment Hits Near-Record Lows

U.S. consumer sentiment fell slightly in May for the fifth straight month, surprising economists. The preliminary reading of the University of Michigan’s closely watched consumer sentiment index declined 2.7% on a monthly basis to 50.8, the second-lowest level in the nearly 75-year history of the survey. The only lower reading was in June 2022. Since January, sentiment has tumbled nearly 30%.

And on Wednesday the Congressional Budget Office released an analysis that said that President Donald Trump’s sweeping tariff plan would cut deficits by $2.8 trillion over a 10-year period while shrinking the economy, raising the inflation rate and reducing the purchasing power of households overall.

Baked into the CBO analysis is a prediction that households would ultimately buy less from countries hit with added tariffs. The budget office estimates that the tariffs would increase the average annual rate of inflation by 0.4 percentage points in 2025 and 2026.

Tariff Impacts Force Price Considerations

In April Procter & Gamble noted during a conference call that the biggest U.S. tariff impacts were coming from raw and packaging materials and some finished product sourced from China. The company said that it would be looking at sourcing options and productivity improvements to mitigate the tariff impact, but that it may also have to raise prices on some products.

That same month, the Consumer Brands Association, which represents big food companies like Coca-Cola and General Mills as well as consumer product makers like Procter & Gamble, warned that although its businesses make most of their goods in the U.S., they now face tariffs on critical ingredients — like wood pulp for toilet paper or cinnamon — that must be imported because of domestic scarcity.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Whooping Cough Is Surging. Do You Need Another Shot?

DON'T MISS

Rancho Cucamonga Prepares for First US Bullet Train Hub in 2028

DON'T MISS

8 Ways Musk and Trump Could Inflict Pain on Each Other

DON'T MISS

Fresno Unified’s Leadership Team Is Double the Size of a Peer District With Better Test Scores

DON'T MISS

Sunday’s Life Jacket Giveaway Promotes Safety on Fresno Area Waters

DON'T MISS

D-Day Veterans Return to Normandy to Mark 81st Anniversary of Landings

DON'T MISS

Lambda Legal, a Nonprofit Supporting LGBTQ+ Rights, Exceeded Fundraising Goal by $105M

DON'T MISS

Jury Awards California Prosecutor $3 Million After She Says She Was Forced Out of Her Position

DON'T MISS

How Trump’s Pick for Surgeon General Uses Her Big Online Following to Make Money

DON'T MISS

Gaza Marks the Start of Eid With Outdoor Prayers in the Rubble and Food Growing Ever Scarcer

UP NEXT

Rancho Cucamonga Prepares for First US Bullet Train Hub in 2028

UP NEXT

8 Ways Musk and Trump Could Inflict Pain on Each Other

UP NEXT

Sunday’s Life Jacket Giveaway Promotes Safety on Fresno Area Waters

UP NEXT

D-Day Veterans Return to Normandy to Mark 81st Anniversary of Landings

UP NEXT

Lambda Legal, a Nonprofit Supporting LGBTQ+ Rights, Exceeded Fundraising Goal by $105M

UP NEXT

Jury Awards California Prosecutor $3 Million After She Says She Was Forced Out of Her Position

UP NEXT

How Trump’s Pick for Surgeon General Uses Her Big Online Following to Make Money

UP NEXT

Gaza Marks the Start of Eid With Outdoor Prayers in the Rubble and Food Growing Ever Scarcer

UP NEXT

Wall Street Gains Ground Following a Solid Jobs Report

UP NEXT

Texas Tech’s NiJaree Canady Bounces Back in Game 2 After Game 1 Heartbreak

Fresno Unified’s Leadership Team Is Double the Size of a Peer District With Better Test Scores

53 minutes ago

Sunday’s Life Jacket Giveaway Promotes Safety on Fresno Area Waters

2 hours ago

D-Day Veterans Return to Normandy to Mark 81st Anniversary of Landings

2 hours ago

Lambda Legal, a Nonprofit Supporting LGBTQ+ Rights, Exceeded Fundraising Goal by $105M

2 hours ago

Jury Awards California Prosecutor $3 Million After She Says She Was Forced Out of Her Position

2 hours ago

How Trump’s Pick for Surgeon General Uses Her Big Online Following to Make Money

2 hours ago

Gaza Marks the Start of Eid With Outdoor Prayers in the Rubble and Food Growing Ever Scarcer

3 hours ago

Wall Street Gains Ground Following a Solid Jobs Report

3 hours ago

Texas Tech’s NiJaree Canady Bounces Back in Game 2 After Game 1 Heartbreak

3 hours ago

French Open: No. 2 Coco Gauff Faces No. 1 Aryna Sabalenka in the Women’s Final

3 hours ago

Whooping Cough Is Surging. Do You Need Another Shot?

After a brief lull during the pandemic, whooping cough has bounced back, raising alarm among public health officials. There have been more t...

56 seconds ago

56 seconds ago

Whooping Cough Is Surging. Do You Need Another Shot?

5 minutes ago

Rancho Cucamonga Prepares for First US Bullet Train Hub in 2028

5 minutes ago

8 Ways Musk and Trump Could Inflict Pain on Each Other

53 minutes ago

Fresno Unified’s Leadership Team Is Double the Size of a Peer District With Better Test Scores

2 hours ago

Sunday’s Life Jacket Giveaway Promotes Safety on Fresno Area Waters

2 hours ago

D-Day Veterans Return to Normandy to Mark 81st Anniversary of Landings

2 hours ago

Lambda Legal, a Nonprofit Supporting LGBTQ+ Rights, Exceeded Fundraising Goal by $105M

2 hours ago

Jury Awards California Prosecutor $3 Million After She Says She Was Forced Out of Her Position

Help continue the work that gets you the news that matters most.

Search

Send this to a friend