P&G To Cut 5,700 Jobs In Restructuring

Procter & Gamble cutting jobsNEW YORK -- Consumer products maker Procter & Gamble Inc. said Thursday it plans to cut 5,700 jobs over the next year and a half as part of a cost-cutting plan.

Procter & Gamble says it plans to save $10 billion by the end of the fiscal year ending in June 2016.

The world's largest consumer products maker, which makes items ranging Luvs diapers, Bounty paper towels and Charmin toilet paper, has been experienced slowing sales volume in the U.S. as consumers continue to spend cautiously. The company also has faced high costs for fuel, packaging and other commodities.

In addition, like other U.S. companies that do business in foreign markets, P&G isn't getting the same benefits from foreign currency exchanges that it enjoyed last year. When the dollar is weak, as it was for most of last year, revenue raised overseas translates into more dollars when converted at headquarters.

The cost-cutting plan is an attempt to address these problems even as the Cincinnati company keeps up spending on initiatives it sees as key for its future growth. These include marketing new products like the single-unit does Tide Pods in North America and expanding Oral B in Latin America.

The job cuts amount to about 10 percent of the company's non-manufacturing workforce, and are expected to be complete by the end of the fiscal year that ends June 2013. The cuts include 1,600 jobs that P&G announced earlier this month. P&G said that even though overall headcount will be reduced, hiring will continue in growth areas such as China or emerging markets.

Procter & Gamble CEO Robert McDonald announced the moves at the Consumer Analyst Group of New York conference in Boca Raton, Fla. The presentation was webcast.

Other parts of the cost-cutting plan include streamlining its operations and cutting costs related to packaging and materials. The moves will cost $3.5 billion in restructuring over a four-year period.

The company now expects adjusted net income in fiscal 2012 of $3.93 to $4.03 per share, from prior guidance of $4 to $4.10 per share. Analysts expect $4.06 per share, according to FactSet. The guidance reflects P&G's agreement to sell its Pringles business to Kellogg for $2.7 billion.

Shares rose $1.56, or 2.4 percent, to $66.

Add a Comment

*0 / 3000 Character Maximum


Filter by:
Yuki Ray Yamanaka


February 27 2012 at 10:08 AM Report abuse -1 rate up rate down Reply

Hello America, Welcome to the changeing global CRISISE. Thanks to American Corporations and their GREED We the American Public can thank all these Corporations for shipping our Jobs and work for the American poeple OVERSEAS to PROFIT for themselves and Screw ALL of us, The people of the USA, Just for their proffits. Lets face it, it is too late, the rest of the world has faced this for years and delt with it, now we need to do something about it.

February 27 2012 at 9:19 AM Report abuse rate up rate down Reply

We need to vote everyone out of office every election, until they understand that if they don't do good for OUR country, they won't last! We need to put America first.
I am not Democrat nor and I Republican, I am an American!! Lets send them a message!!
We also ALL need to protest until they have the same retirement benefits and health care benefits that we do.

February 27 2012 at 4:11 AM Report abuse +2 rate up rate down Reply

P & G is owned by the Koch brothers. Surprise, they are doing something to hurt the economy before the election.

February 27 2012 at 4:02 AM Report abuse -1 rate up rate down Reply
1 reply to threefromil's comment

and who owned SOLYNDRA....KOCH? no, we did...witout our permission....and they were told they had to purchase the solar panels and all their equipment from obama's otehr solar company (forgot the name, it was in newspaper yesterday), or they woudn't get the money he promised them...but, they intended to do as he said all along....AND BOTH THOSE COMPANIES WENT INTO BANKRUPTCY.....DARN THAT KOCH DOING THIS TO ALL THOSE SOLAR COMPANIES, RIGHT? THEY ARE JUST RESTRUCTURING AS ANY NORMAL PLACE WOULD DO IN THIS HORRIBLE ECONOMY....THEY DIDN'T DECLARE BANKRUPTCY, NOW DID THEY....AND THEY WEREN'T USING TAXPAYER MONEY....SO GROW UP AND GET A LIFE WHICH IS HONEST

February 27 2012 at 4:52 AM Report abuse +1 rate up rate down Reply

Oh will you stop sticking up for oboma already . our economy uis worse now than ever . I hate Romney to. But Oboma we expected more from. He said he was going to Change and was not one of them .. he is .. what a disapointment..

February 27 2012 at 3:47 AM Report abuse +3 rate up rate down Reply
1 reply to John's comment

NOT VOTING IS A VOTE FOR OBAMA...SO, THAT IS NOT AN OPTION FOR ME, I WILL VOTE FOR THE GOP CANDIDATE...when obama came in office we had $1.86 gas and unemployment was at 7%, I researched it....when GWB was in office and BEFORE the dems got the congress and the senate...the stock makret was at !4,500+ and the unemployment was at 5%....so, what is the change we got? for the worse

February 27 2012 at 4:45 AM Report abuse +3 rate up rate down Reply

when the election comes vote non above, and see what happens . has ant body ever found out how much these dems and repo get just to sit in office and play god with our lives. i think these people forgot the CONSTITUTION its we the people not not the ones that sit up there in the white house but WE THE PEOPLE meaning all of us . None of these people have gone out to see what we want. they make a good promise just to get in and later deliver nothing,they just want us to belive them so we vote for them and then they go against what we belive in . ITS WE THE PEOPLE ,

February 27 2012 at 2:31 AM Report abuse +3 rate up rate down Reply
1 reply to cityslicker9292's comment

we have a president who put his hand on the Bible when he took his oath of office and swore to uphold the Constitution of the United States....now he says that he doesn't think it says hat it actually meant....he thinks he is intelligent enough to re-write it...and justice ginsberg goes to Egypt and tells them if they draw a consitution, to not follow the one we have here...to go for the South Africa one instead...did she not also take an oath to uphold the CONSTITUTION OF THE UNITED STATES? Why are they both not impeached just for lying UNDER OATH?

February 27 2012 at 4:48 AM Report abuse +3 rate up rate down Reply

Gotta take the good with the bad.. you weren't crying last year when you made money P&G..Time for a shareholders meeting... ASSWIPE... The cost must go up...so that profits don't go down the toilet..

February 27 2012 at 12:57 AM Report abuse -2 rate up rate down Reply

Cut some top executive salaries and perks...

February 27 2012 at 12:16 AM Report abuse +2 rate up rate down Reply

Now we all can fully understand the concept behind "Supply Side, Voodoo Economics".

February 26 2012 at 11:19 PM Report abuse +1 rate up rate down Reply

Obama the biigest presidential failure in the history of the US. What a legacy. Oh man
to be worse than Jimmy Carter !!!!!!!!!!!!!!!!!!!!!!!!!!! Whoaaaaaaaaaaaa

February 26 2012 at 10:56 PM Report abuse +6 rate up rate down Reply
1 reply to jyatt7's comment
Hi Catmom!

What does Obama have to do with the way that P&G does business? If you want to blame anyone, blame the president that signed into tax law a tax break for any company that outsources their manufacturing business to a foreign land. And if you said Obama you'd be wrong.

February 26 2012 at 11:32 PM Report abuse -4 rate up rate down Reply
1 reply to Hi Catmom!'s comment

Obama is finished... He hasn't done one thing good for this country

February 27 2012 at 12:59 AM Report abuse +5 rate up rate down

Search Articles

Picks From the Web