Trade war prompts Procter & Gamble to launch major round of layoffs

Procter & Gamble plans to cut 7,000 jobs worldwide over the next two years, which is 6 % of its total workforce. The multinational is restructuring in response to volatile consumer behaviour and looming import tariffs.

Increasing uncertainty

The manufacturer of global brands such as Always, Ariel, Dreft, Gillette and Pampers employs 108,000 people all over the world. No rounds of redundancies are said to be planned in the factories, but one in six office jobs is threatened as the multinational wants to simplify the organisation with smaller teams in which people are given broader roles. Procter & Gamble will also exit categories or discontinue brands in certain markets to cut costs, Reuters reports.

The new two-year plan comes as the manufacturer sees consumer demand dropping as costs rise and uncertainty increases due to the trade war. The Trump administration’s import tariffs are fuelling fears of a recession in the United States, Procter & Gamble’s main market.