Procter & Gamble to cut 15% of office jobs over next two years

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Procter & Gamble Co. plans to slash as many as 7,000 office jobs over the next two years as the maker of Tide laundry detergent and Gillette razors seeks to improve productivity.

The reductions would amount to about 15% of the current non-manufacturing workforce, P&G said in a presentation posted on its website. The locations of the cuts weren’t provided.

Makers of toilet paper and toothpaste are grappling with weakening consumer sentiment and higher costs from tariffs. While prices of products are rising, many companies are also cutting costs as they seek to find ways to mitigate the effect on shoppers.

Cincinnati-based P&G lowered its guidance in the most recent earnings season to account for tariff costs and worsening consumption trends. The maker of Old Spice forecast $1 billion to $1.5 billion in incremental costs.

P&G is also reviewing its portfolio of brands and may announce some divestitures in the months ahead, according to the presentation from the Deutsche Bank Global Consumer Conference. The company will also look at cutting costs and improving the efficiency of its supply chain.

In April, when P&G cut its annual sales and profit guidance, Chief Executive Officer Jon Moeller said the company will likely roll out price increases during its next fiscal year, which starts in July, adding that tariffs are “inherently inflationary.”

The company also said that before raising prices, P&G will seek to shift sourcing or change formulations to reduce exposure to tariffs. Major companies are taking different tacks to try and navigate current volatility, with some withdrawing financial guidance altogether.

Earlier this week, Remy Cointreau SA pulled its long-term sales guidance blaming policies in America and China and a slow recovery in the US market.

P&G expects to incur a charge of between $1 billion and $1.6 billion over the course of the 2-year restructuring program. Shares of P&G were little changed in premarket trading in New York on Thursday.