Procter & Gamble, the renowned consumer goods company behind brands like Tide and Pampers, is set to reduce its workforce by up to 7,000 jobs, amounting to approximately 6% of its global employees, over the next two years. This decision comes in response to challenges posed by tariff-related costs and consumer apprehension about the economy. The job cuts, disclosed at a consumer conference in Paris, will impact around 15% of the current non-manufacturing workforce, as stated by CFO Andre Schulten. While emphasizing the importance of this restructuring initiative for the company’s long-term goals, Schulten acknowledged the ongoing near-term obstacles.

With its headquarters in Cincinnati and a workforce of about 108,000 employees worldwide, Procter & Gamble is also planning to discontinue certain product sales in specific markets as part of a broader restructuring strategy. The company plans to share more details on these changes in July. The move reflects broader economic concerns, including American consumer unease over spending and inflation. Recent data showing a decline in US consumer sentiment adds to these worries, with concerns raised about President Donald Trump’s tariff plan impacting household purchasing power and inflation rates.

Procter & Gamble has been grappling with the effects of tariffs, particularly on raw materials and finished products sourced from China. The company is exploring sourcing alternatives and productivity enhancements to mitigate tariff impacts, although price adjustments on some products may be necessary. The broader industry, represented by the Consumer Brands Association, has also voiced concerns about tariffs affecting critical imported ingredients essential for manufacturing. These developments underscore the complex challenges facing consumer goods companies in the current economic landscape.