P&G To Cut Even More Jobs

P&G job cuts Tide

By Mae Anderson

NEW YORK -- Consumer products giant Procter & Gamble Co. said Thursday that it plans to cut more jobs and increase share repurchases as it works on its turnaround plan to focus on its most profitable categories and countries. The news comes as the company holds its annual analyst meeting in Cincinnati, and as P&G faces increasing investor pressure to improve its results.

The maker of Tide detergent and Gillette razors, P&G says that on top of its already announced plan to cut 10 percent of its non-manufacturing jobs, or 5,700 jobs, by the end of its fiscal year in June 2013, it plans to continue to reduce its non-manufacturing jobs by 2 percent to 4 percent between 2014 and 2016. It will continue to hire in other areas, however.

P&G also said it now expects to buy back $4 billion to $6 billion of its shares. Previously it forecast $4 billion.

P&G has admitted to missteps in pricing and in balancing growth in emerging markets, which account for about 38 percent of its sales, amid an uncertain global economy and lackluster market share growth overall.

In May, P&G announced a plan to focus on its 40 top businesses, 20 biggest new products and 10 most profitable emerging markets, as it is undergoes a cost-cutting plan aimed at saving $10 billion by fiscal 2016.

The pressure is on since activist investor William Ackman, known for agitating for change in companies he has a stake in, has disclosed that he has a 1 percent stake in Procter & Gamble.

P&G affirmed its forecast for the fiscal second quarter and fiscal year. It predicts second-quarter adjusted core earnings of $1.07 to $1.13 per share with revenue ranging from down 1 percent to up 1 percent, implying revenue $21.88 billion to $22.32 billion. Analysts expect net income of $1.11 on revenue of $21.81 billion.

For the full year P&G kept its guidance for adjusted core earnings of $3.80 to $4 on flat revenue growth to up 1 percent. That implies $83.68 billion to $84.52 billion. Analysts expect net income of $3.96 per share on revenue of $84.20 billion.

Shares fell 21 cents Thursday to close at $66.32.

How P&G's CEO Hopes to Turn Around His Company

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Ron West

Damn, I don't think many of us read the same article. It plainly says they made mistakes in pricing and in misreading growth in developing markets.

But, of course, it's better just to politicize every situation, particularly for those who opted for PE rather than Critical Thinking.

November 19 2012 at 10:47 AM Report abuse rate up rate down Reply

Sign of the Obama.

Less is more.

Les Mis

November 19 2012 at 10:20 AM Report abuse +1 rate up rate down Reply

Evidently P&G is unaware of the imminent economic "boom" predicted by the Democrats.....Oh, well.

November 19 2012 at 9:46 AM Report abuse +2 rate up rate down Reply
Dagaz Rule

dont purchase any products from a company going out of business . support the ones that keep people working instead .

November 19 2012 at 9:33 AM Report abuse -1 rate up rate down Reply
1 reply to Dagaz Rule's comment
Welcome MSGT

Under obama there are very few companies around any more, and soon they will be gone. This guy has screwed us real good. The country is finished.

November 19 2012 at 10:49 AM Report abuse rate up rate down Reply

As our shelves become barren, I remember photos in my school days' Weekly Reader showing store shelves in Russia and Cuba. Empty areas, no selections of brands or colors, just the basics if that. Lines of people waiting for a loaf of bread or rice, that is what is coming in the United States of America as large corporations vi for position is the marketplace. Production costs skyrocket, as raw materials cost more, sales go down and people are laid off due to poor sales. Well, you can't have sales without people having income, you cannot give welfare assistance to people or provide unemployment pay unless someone is working to pay taxes, you can't collect taxes unless someone is working, so where does this stop. Kinda like the old song, Stop the World I want to get off" BUT we can't do that. So corporations have to re-evaluate their positions financially, by cutting back on management and looking at the most productive items they make. P & G is doing just that. Does not matter who we have as President we have to begin the healing process of refocusing our industries. Bringing home manufacturing and taking jobs whether we like the pay or not, that is a start. Unions served a purposed in protecting people in the 30s but they became greedy, powerful monsters that now need to be caged and controlled so our country can get back to work. The heavy burden of union pensions are bankrupting America and causing corporation to outsource to other countries - it is not because Americans don't want to work. But it is partially because some Americans have it in their heads they aren't going to work for less wages or benefits. Well, Baker's Union how is that working for your Hostess union employees now? GREED is corruption and we must get it under control. Reasonable pay for reasonable work - and bring jobs back to our country so we stop providing foreign countries with income we cannot afford to pay them. Closing our outflow of the American dollar and containing our businesses inside our borders is essential to the healing of America's bleeding sores.

November 19 2012 at 9:25 AM Report abuse +2 rate up rate down Reply

Until the Republican Conservative Religious Right Wing business owners step up to the plate and get people back to work you can blame either party all you want about job creation but it is those who are in business that provide or cut jobs. If they are truly religious they will care and do something to help people and if they are more greedy than concerned they will not. Here is the reality the baby boomers the largest generation alive are beginning to retire that means no longer work if they can afford it and in the case of physical problems have no choice. As business embraces robots instead of people how are people to provide for their livelihoods? For the young those retiring will open up jobs for you and for those retiring you will not have double the people paying for your retirement like the last generation. As this continues it forces a more social agenda and what I find interesting is the very group that is against this in their greed for the bottom line over strength of their country is reinforcing a social agenda indirectly. The other side of the aisle in sympathy for those struggling pass the programs to help the people and yet get blamed in creating socialism but the reality is until the middle class doesn't get back to work to support the economy the more the cycle favors a social direction.

November 19 2012 at 8:38 AM Report abuse -6 rate up rate down Reply
3 replies to rwa5279's comment

And I so agree with the comment about the price of Tide? nothing THAT great about It that should condone that high of a price! They need to lower their ridiculously high prices, maybe more of us that switched to a lesser expensive brand would go back. I'd love to "be able to afford" the LUXURY of Tide!:)

November 19 2012 at 8:24 AM Report abuse +1 rate up rate down Reply

Yet they "say" we are headed forwards???? Um-Ok, WHERE???

November 19 2012 at 8:22 AM Report abuse rate up rate down Reply
1 reply to Patti's comment

We are headed off the cliff and Obama is moving us faster and "foward."

November 19 2012 at 10:16 AM Report abuse +2 rate up rate down Reply

Hopefully these jobs are Union Jobs in Florida, Virginia, Colorado and Ohio and more will come in the Blue States!! Go Team Obammie and the DumbOcrats!!!!

November 19 2012 at 7:21 AM Report abuse +2 rate up rate down Reply
1 reply to sonny's comment

Florida is not a union state.

November 19 2012 at 8:52 AM Report abuse +2 rate up rate down Reply
1 reply to suemarney's comment

We have unions here!

November 19 2012 at 11:40 AM Report abuse rate up rate down

It is the Obama plan. 4 more years of crash and burn and that should about do it. I don't feel sorry for people anymore, you asked for it now you live with it...all that hope and change won't feed your empty bellies or put a roof over your head, lets see how long that warm and fuzzy "feeling" lasts when you finally wake up and you are told the gravy train has stopped and get the heck off. Mean while I'll get up every morning and do my job, prepare for the worst for my family and close friends and pay my fair share and YOURS. It's just a matter of time and even thats running out. Be prepared...

November 17 2012 at 1:20 PM Report abuse +7 rate up rate down Reply
2 replies to windswhisper43's comment

I agree with you. When the makers quit making the takers won't have anything to take. The next few years are going to be something out of the horror movies. Those of us who are survivors will keep doing what we can for ourselves and our families, while the leeches will continue to suck the government dry.

November 19 2012 at 8:56 AM Report abuse +5 rate up rate down Reply
1 reply to suemarney's comment

Yep me and my wife are reducing our hours voluntarily and our company cuts them also to have a lower tax burden next year. We are both FT Nurses and on call everyday at a major hospital in Orlando, Florida for a major HC System. Our philosophy "why work more and harder when Obama takes the money and gives it to bums?" We will make enough to take care of ourselves screw the welfare lifestylers.

November 19 2012 at 11:45 AM Report abuse rate up rate down

Very well put. I'm totally terrified of what might happen in the next few years and the even more scary part is when the takers can no longer take they still won't blame the guy in charge and his policies. And we the responisble ones will continue to push on and be survivors the best way we can. It's a sad state when you consider 6,7,8 years ago the good old days.

November 19 2012 at 11:27 AM Report abuse rate up rate down Reply

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