Procter & Gamble to cut 7,000 jobs as tariffs weigh on economy

The big picture: P&G expects to cut about 15% of its non-manufacturing workforce to boost productivity, CFO Andre Schulten said Thursday at a financial conference.

• The move is part of a broader two-year restructuring program which includes P&G potentially exiting certain brands and products, though Schulten declined to specify which ones might be cut.

Between the lines: Tariffs are driving higher costs, which are weighing on consumer demand.

• There's been "a deceleration because of uncertainty in the consumer space, all of the tariff conversations, geopolitical uncertainty," Schulten said.
• The company's organic sales growth of 2% for the first three quarters of the 2025 fiscal year would be the lowest rate of full-year growth since at least 2018.
• P&G had already signaled in April that it would likely raise prices, as well.

The big question: Is AI driving any of the job cuts?

• The cuts are intended to "create an even more agile, empowered and accountable organization – including the use of automation and digitization to enhance efficiency," a P&G spokesperson tells Axios in an email.