P&G To Eliminate 5,700 Jobs As Part Of $10B Cost-Cutting Efforts

By Lane Report Staff

Cincinatti-based Procter & Gamble plans to cut a total of 5,700 non-manufacturing jobs by the middle of next year as part of a cost-reduction strategy to achieve $10 billion in savings by 2015.

P&G, which owns well-known brands such as Tide, Charmin and Gillette, has struggled with rising costs of raw materials and has seen negligible sales growth in either the United States or Europe.

In addition to the job cuts, the company also plans to reduce television advertising and utilize less expensive packaging for its goods.

The jobs to be eliminated include 1,600 jobs that the company had already announced would be cut through an early retirement program. The remaining 4,100 jobs will come from the company’s marketing, product design, logistics and research departments through a combination of layoffs and attrition.

The cuts do not include 1,700 jobs that will move over to The Kellogg Co. as part of that company’s recent $2.7 billion cash purchase of P&G’s Pringles chip brand.

Last April, P&G announced plans to sell the Pringles brand to Diamond Foods, but that agreement ended up being mutually terminated.

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