Pampers-Maker Procter & Gamble To Axe 7,000 Jobs Over 2 Years As It Navigates Trump Tariff Impact

Procter & Gamble (PG) announced on Thursday that it will cut 7,000 jobs over the next two years and divest certain brands as part of a restructuring program.

P & G's shares were up 0.15% in Thursday's pre-market trading session.

According to a Reuters report, the two-year plan to save costs comes as President Donald Trump's tariffs and economic uncertainty have led to muted demand in 2025.

The company said it could also exit certain brands, but stopped short of detailing the exact plans.

"This is not a new approach, rather an intentional acceleration of the current strategy...to win in the increasingly challenging environment in which we compete," said P & G executives at a Deutsche Bank Consumer Conference in Paris.

The company estimates that Trump's tariffs could result in a $600 million hit for the maker of Pampers diapers and Tide detergent in fiscal year 2026.

This is despite P & G domestically producing around 90% of the products sold in the U.S. Some raw materials, packaging materials, and finished goods are imported from China, it said.

In April, P & G cut its full-year outlook after its third-quarter revenue missed Wall Street expectations. The company also announced it was ready to use everything in its arsenal to mitigate the impact of Trump's tariffs, including hiking prices of some of its products.

At the time, P & G CFO Andre Schulten said“a more nervous customer” is emerging amid increasing economic uncertainties.

Schulten now thinks the geopolitical environment is unpredictable.

P & G's stock is down 1% year-to-date, and nearly flat over the past 12 months.

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