CINCINNATI, Ohio: Facing global economic headwinds and mounting tariff pressures, Procter & Gamble announced plans this week to cut 7,000 jobs over the next two years and exit select brands and categories in specific markets.

The move is part of a broader restructuring effort aimed at staying competitive as consumer uncertainty deepens.

The world’s largest consumer goods maker said the layoffs would impact around six percent of its global workforce and are part of its ongoing strategy to streamline operations. P&G executives described the decision not as a pivot but as “an intentional acceleration of the current strategy … to win in the increasingly challenging environment in which we compete.”

The changes were revealed at the Deutsche Bank Consumer Conference in Paris, where CFO Andre Schulten and Operations Head Shailesh Jejurikar also highlighted the “unpredictable” geopolitical backdrop and its effect on consumers.

President Donald Trump’s expansive tariff regime continues to disrupt trade flows and increase input costs. P&G said it expects a roughly US$600 million before-tax hit in fiscal 2026 due to current tariff levels, though that number may vary given the shifting policy landscape.

A Reuters analysis shows the U.S.-China trade war has already cost businesses over $34 billion in lost sales and rising expenses. In response, P&G said it is ready to “pull every lever” available—such as raising prices and implementing cost-cutting measures—to cushion the blow.

“The two-year window … gives them some flexibility in terms of timing and depth of cuts, as the tariff situation is very fluid,” said Christian Greiner, senior portfolio manager at F/m Investments, which owns P&G shares.

The company said the restructuring would lead to a leaner, more agile setup by “making roles broader” and “teams smaller.” The goal is to simplify its organizational structure while adjusting to external market volatility.

P&G, which makes household staples like Tide detergent and Pampers diapers, imports some raw materials, packaging, and finished goods from China, though about 90 percent of its U.S. sales come from domestically produced products.

As of June 2024, the Cincinnati-based company had approximately 108,000 employees. The job cuts would represent roughly 15 percent of its non-manufacturing workforce.

P&G said it anticipates $1 billion to $1.6 billion in before-tax charges over the next two years as part of the restructuring, with about one-fourth of that being non-cash costs.

The stock has remained essentially flat over the past year.