Procter & Gamble Layoff: Head & Shoulders Shampoo Maker To Slash 7,000 Jobs - Reason?

Proctor & Gamble, the maker of FMCG products such as Tide and Pampers, is reportedly going to slash 7,000 jobs or nearly 6% of its workforce in the next two years as part of a restructuring, as part of which the firm will exit certain product categories in certain markets.

But Why Is P&G Doing This?

The company is doing this as it is part of a restructuring which will include the Tide maker exiting some product categories in certain markets.

This two-year plan comes as consumer goods giants P&G as well as Unilever are preparing themselves for muted demand in 2025, which is stemming from growing uncertainty due to US tariffs.

"This is not a new approach, rather an intentional acceleration of the current strategy...to win in the increasingly challenging environment in which we compete," a Reuters report cited P&G executives saying at a Deutsche Bank Consumer Conference in Paris on Thursday.

The firm added that this initiative could likely include some divestitures without providing additional information.

How Are Tariffs Affecting P&G?

United States President Donald trump's tariffs on trading partners have sparked concerns of a recession in the US.

P&G imports raw ingredients, packaging materials and some finished products into the U.S. from China, while the vast majority - roughly 90% - of what it sells is produced domestically, the firm said.

The firm also estimated a $600 million before-tax hit in its fiscal year 2026, based on current tariff rates.

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