Consumer goods giant Procter & Gamble (PG) is slashing 7,000 non-manufacturing jobs over the next two years blaming wavering consumer demand and extra costs as a result of Trump tariffs.
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Increasing Challenges
The company, which is known for products such as Head & Shoulders shampoo, Pampers, and Gillette razors, said it was facing an increasingly challenging environment. The job cuts represent about 15% of its non-manufacturing workforce. It has around 108,000 workers in total around the world at present.
The tariffs are set to ramp up the cost of importing vital raw ingredients, packaging materials, and some finished products into the U.S. from China. P&G has said that will mean higher prices on some of its products and a likely hit to demand.
The company also revealed plans to streamline its portfolio of products. Although it did not reveal details, this could mean exiting some product lines or shedding smaller brands in certain countries.
It said the changes would help it reduce costs in its supply chain.
Jobs Woe
The company is going through a tough period, with its share price dropping 6% over the last six months. In April, it reported a drop in third quarter sales and lowered its full-year revenue outlook, again citing economic uncertainty and geopolitical instability. Indeed, P&G said it now expects total net sales for 2025 to be roughly in line with last year, compared with a prior target of 2% to 4% growth.
It is not the only blue-chip firm looking to cut costs by shaving jobs. Retail giant Walmart (WMT) is also set to cut 1,500 roles and even Magnificent 7 firm Microsoft is terminating 6,000 jobs.
These moves are unlikely to please President Trump who had wanted to boost U.S. jobs as a result of his tariffs stance.
Is PG a Good Stock to Buy Now?
On TipRanks, PG has a Moderate Buy consensus based on 10 Buy and 10 Hold ratings. Its highest price target is $190. PG stock’s consensus price target is $171.28 implying an 3.21% upside.
