P&G’s Restructuring Strategy Includes Slashing 5700 Jobs -------------------------------------------------
Dhwani Shah | Feb 24, 2012 | Comments 0
The consumer product maker giant, Procter & Gamble, has developed a strategy to save $10 billion. The strategy involves cutting 5700 jobs, accounting to a remarkable 10 percent of the company’s non-manufacturing workforce of the total number of employees associated with P&G. P&G’s cost-cutting strategy
The elimination would come over the next year and a half as part of a cost-cutting plan, as reported in amanufacturing magazine. The job cuts include eliminating 4,100 non manufacturing positions in fiscal 2013, which comes on top of 1,600 job cuts in its current fiscal year. P&G estimates that overhead job cuts will give up to $3 billion in savings. The consumer product maker giant, who makes products ranging from Luvs diapers, Bounty paper towels to Charmin toilet paper, has been experiencing slowing sales volume in the U.S. as consumers continue to spend carefully. The company has also obviously not been able to escape encounter, says a business magazine, with high costs for fuel, packaging and other commodities. The cost-cutting strategy is an attempt to address all of these problems, which are practically unavoidable, even as the company keeps up spending on initiatives it considers crucial to growth. These problems include marketing new products like the single-unit Tide Pods in North America and expanding Oral B in Latin America. P&G not only slashes jobs but also focuses on other cost-cutting techniques P&G is also focusing its energy on saving $6 billion by using less expensive packaging materials and maintaining other efficiencies in the supply chain and $1 billion in cuts to marketing spending. This may not be in its strategic plans, that have captured the attention of almost all the major business newsagencies, but P&G has outlined a variety of projects it...
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