Under the shadow of tariffs, consumer giants enter survival mode.
On Thursday, June 5th, Procter &amp; Gamble announced at a conference in Paris that it will lay off 7,000 employees over the next two years, accounting for 6% of its total workforce, to cut costs and respond to slowing demand and uncertainties brought by tariffs.
As of June 30, 2024, Procter &amp; Gamble has 108,000 employees globally, and this layoff will involve about 15% of non-manufacturing staff. The specific countries or regions affected by the layoffs have not yet been disclosed.
In addition to layoffs, Procter &amp; Gamble also plans to exit specific categories, brands, or product forms in certain markets, restructure its organizational framework, and may even sell some brands.
<h2>Price Increases, Layoffs, Brand Cuts</h2>
Trump's tariff policy has created global trade tensions, raising operational costs for businesses, coupled with weakening consumer demand, which has hindered sales growth for consumer giants like Procter &amp; Gamble.
According to CCTV News, Trump previously announced a 10% &#34;baseline tariff&#34; on all countries. Trump's tariff policy has also intensified market concerns about a recession in the U.S. economy. As a company with the U.S. as its largest market, Procter &amp; Gamble's situation is particularly delicate.
In April of this year, Procter &amp; Gamble stated that it would raise prices on certain products and was prepared to use all means to mitigate the impact of tariffs. At the same time, Procter &amp; Gamble lowered its full-year sales and profit expectations, citing increased consumer anxiety and a reduction in spending.
Procter &amp; Gamble now expects organic sales growth for fiscal year 2025 to be only 2%, down from a previous forecast range of 3% to 5%, indicating that the company has confirmed a worsening market environment.
On Thursday, Procter &amp; Gamble's Chief Financial Officer Andre Schulten and Chief Operating Officer Shailesh Jejurikar stated that the current geopolitical environment is unpredictable, and consumers are facing more uncertainties. The executives also said:
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&#34;This layoff and related adjustments are not sudden changes, but rather an acceleration of the current strategy aimed at strengthening Procter &amp; Gamble's advantages to win in an increasingly challenging market environment.&#34;
</blockquote>
Procter &amp; Gamble added that adjustments to its product portfolio will also help the company adjust its supply chain to reduce costs

Due to sluggish consumer demand and increasing uncertainty over Trump's tariffs, Procter & Gamble announced on Thursday that it will lay off 7,000 employees over the next two years while exiting specific categories and brands to "slim down for the winter."

- Procter & Gamble announced plans to cut 7,000 jobs, representing 6% of its workforce, to reduce costs amid slowing demand and tariff uncertainties.  
- The layoffs will affect approximately 15% of non-manufacturing employees, with specific locations yet to be disclosed, while the company also plans to exit certain markets and restructure its organization.  
- The geopolitical climate and rising operational costs due to tariffs have led to a downward revision of sales growth expectations, with Procter & Gamble now forecasting only 2% organic sales growth for fiscal year 2025.