Procter & Gamble announced on June 5, 2025, a significant two-year restructuring program that includes cutting up to 7,000 non-manufacturing overhead personnel globally. This represents approximately 15% of its non-manufacturing workforce and is part of a broader effort to streamline operations and improve cost structure.
CFO Andre Schulten stated that the initiative is an 'intentional strengthening' of P&G's integrated growth strategy, designed to create 'financial headroom' for sustained investment in superiority and market growth. The company expects to incur $1.5 billion to $2.0 billion in pre-tax restructuring costs over the two-year period, with half anticipated by the end of fiscal 2026.
The restructuring also involves organizational streamlining to foster a more agile, empowered, and accountable structure, with broader roles and smaller teams. P&G plans to exit some categories, brands, and product forms in individual markets, such as streamlining the Feminine Care pad lineup in parts of Asia and discontinuing small nonstrategic country product form combinations.
Additionally, the upcoming termination of the Glad joint venture agreement with The Clorox Company, expected in January 2026, will yield approximately $500 million in cash proceeds and an after-tax gain of $250 million to $300 million in Q3 FY26. These moves are designed to focus resources on higher-value creation opportunities and enhance supply chain efficiencies.
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