Procter & Gamble to Cut 7,000 Jobs: What the Layoffs Reveal About Automation and Restructuring

Procter & Gamble (P&G) is set to axe around 7,000 white-collar jobs worldwide over the next two years, in a strategic move to digitise and streamline its operations. The cuts were disclosed on 5 June 2025 during a consumer goods conference in Paris and signal a major reshaping of the company's global workforce.

The redundancies will primarily affect office-based staff, with manufacturing roles expected to remain largely untouched. Chief Financial Officer Andre Schulten stated that the restructure aims to simplify processes, remove bureaucratic layers, and enable faster responses to shifting market dynamics.

Streamlining for a Digital Future

Far from being driven by short-term financial concerns, the job cuts form part of a broader transformation. Schulten explained that P&G is moving towards a leaner model by "broadening roles" — reducing overlapping responsibilities and leveraging digital tools to enhance productivity and job satisfaction.

The cost of the restructure is projected to fall between $1 billion and $1.6 billion (£780 million to £1.25 billion). This investment will cover severance packages, system upgrades, and the potential withdrawal from underperforming brands or regional markets. However, P&G has yet to specify which departments or countries will be hit first.

Automation at the Core

Automation is central to the overhaul. While P&G has been introducing digital technologies for several years, this latest push represents a significant acceleration in both scale and pace. Tasks such as data entry, internal reporting, and certain administrative functions are increasingly being automated, with artificial intelligence playing a key role.

Executives emphasise that this shift is not purely about reducing costs. Rather, the aim is to free up resources to focus on creativity, agility, and consumer insight — all vital in the highly competitive fast-moving consumer goods (FMCG) sector.

P&G is not alone in this transition. Competitors such as Nestlé and Unilever are implementing similar changes, as automation and workforce restructuring become standard practice in the post-pandemic corporate landscape.

The Human Cost of Efficiency

Despite the strategic rationale, the impact on employees is stark. Thousands of long-serving workers now face redundancy, with some likely to be retrained or reassigned, while others may not be redeployed at all.

Jobs in human resources, finance, marketing, and other administrative departments — traditionally viewed as secure — are particularly vulnerable. The effects will be felt well beyond office walls, rippling into families, local communities, and regional economies where P&G has a presence.

Analysts suggest that Western markets, including the UK and other parts of Europe, are likely to see the earliest wave of cuts due to their concentration of back-office functions.

Financial Pressures and Market Reaction

While P&G remains profitable — reporting a 5% rise in net income last quarter — it faces headwinds. Sales dipped by 2%, and costs for raw materials continue to fluctuate. Exchange rate volatility and geopolitical tensions are further complicating the outlook.

Investors have so far responded positively. The company's share price rose modestly following the announcement, indicating confidence in leadership's willingness to act decisively during economic uncertainty.

However, critics argue that the combination of large-scale automation and job reductions could worsen income inequality and hollow out the mid-tier employment base.

Looking Ahead

Further details are expected during P&G's next earnings call on 29 July. Employees, analysts, and shareholders will be watching closely to understand how the company plans to implement the cuts — and how it will support those affected.

Ultimately, P&G's challenge lies in managing the transition to a more digital, agile business while maintaining social responsibility. Whether this strategy proves successful will depend not just on the bottom line, but on the company's ability to balance innovation with ethical impact.