Company SLASHES 7,000 Jobs – MASSIVE Layoffs!

Shadows of laid-off workers walking, large figure pointing.

American workers are increasingly feeling the pinch of today’s economy as one of the world’s largest consumer goods companies recently announced a significant workforce reduction, cutting approximately 7,000 jobs.

Procter & Gamble, the consumer goods giant, announced a major restructuring that will eliminate 6% of its global workforce over the next two years.

The job reductions represent approximately 15% of P&G’s non-manufacturing workforce, which currently employs around 108,000 people worldwide.

Corporate executives pointed directly to tariff-related costs and declining consumer sentiment as key factors driving the decision to downsize operations so significantly.

P&G’s Chief Financial Officer Andre Schulten framed the cuts as necessary for long-term goals while acknowledging ongoing challenges.

The restructuring extends beyond workforce reduction to include withdrawing certain products from specific markets, with more details promised during the company’s earnings call in July.

Moreover, the economic pressure facing P&G mirrors broader concerns in the American economy.

Consumer sentiment has been rapidly declining, with the University of Michigan’s consumer sentiment index showing significant drops.

Meanwhile, the company must navigate the increasing costs of raw materials and packaging from China due to tariffs implemented during the Trump administration.

The Congressional Budget Office has predicted that while tariffs may reduce deficits, they will simultaneously shrink the economy and increase inflation.

The company anticipates a 3 to 4 cent per share impact on its fiscal fourth-quarter earnings due to tariffs alone, with projections showing a staggering $600 million pre-tax headwind from tariffs by fiscal 2026.

American consumers should prepare for higher prices on everyday essentials as P&G has already signaled plans to raise prices in the next fiscal year.

The Consumer Brands Association has also highlighted that tariffs are impacting critical imported ingredients necessary for manufacturing common household goods that millions of American families rely on.

P&G’s stock dropped more than 1% following the announcement, adding to a year-to-date decline of 2%.

This starkly contrasts previous years of strong performance, showing how even a $407 billion market cap giant is not immune to American businesses’ economic headwinds.

The corporate restructuring comes as P&G faces slowing growth in the U.S., its largest market, with North American organic sales rising just 1% in the most recent fiscal quarter.

This broader effort to reevaluate its portfolio, restructure supply chains, and streamline corporate organization will cost between $1 billion and $1.6 billion before taxes.

At the same time, P&G joined other major American companies, such as Microsoft and Starbucks, in announcing significant job cuts.

As more corporate giants trim their workforces, American workers feel the impact of economic policies that continue to squeeze businesses and consumers.