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(Sharecast News) - Consumer goods giant Procter and Gamble has announced plans to cut 7,000 jobs as part of a new two-year non-core restructuring programme amid a sharp slowdown in organic sales growth.
The plans, which involve brand exits, selected brand divestitures and potential market exits, will see the company lose around 15% of its workforce from non-manufacturing roles.
P&G said it wants to make its supply chain more efficient, innovative and resilient, while enabling faster decision-making across the organisation.
Organic sales growth at P&G has slowed to just 2% over the first three quarters of its latest fiscal year combined, down from 4% last year and 7% the year before that. And while nine of its 10 product categories showed organic sales increases - baby care products fell 2% - growth has been tepid at best.
The product giant said it wants to deliver the "same or better output measures" while lowering spending and resource investment.
However, the company did not go into specifics about which brands or markets it plans to exit.
P&G futures were up just 0.1% at $166.19 in pre-market trading in New York.
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