**Procter & Gamble Announces Plans to Cut 7,000 Jobs Amid Economic Concerns**

Procter & Gamble (P&G), the Cincinnati-based conglomerate known for popular brands such as Tide and Pampers, is set to reduce its global workforce by up to 7,000 jobs over the next two years. This downsizing represents about 6% of its total global staff. The decision comes as the company grapples with increased tariff-related expenses and consumer anxiety about economic conditions.

Chief Financial Officer Andre Schulten disclosed the layoffs at the Deutsche Bank consumer conference in Paris. He noted that the cuts will make up roughly 15% of P&G's non-manufacturing workforce. Schulten emphasized that this restructuring is crucial for the company to meet its long-term financial goals. However, he admitted that this move won't completely alleviate the immediate challenges the company faces.

In June 2024, Procter & Gamble's workforce included around 108,000 employees worldwide. The upcoming job reductions are part of a more extensive restructuring strategy, which also involves halting the sale of certain products in specific markets. The company plans to release further details about these changes in July.

Like many other companies, Procter & Gamble is dealing with wary American consumers who are monitoring their spending due to inflation concerns. A recent analysis by the Congressional Budget Office (CBO) highlighted that Donald Trump's comprehensive tariff plan could reduce deficits by $2.8 trillion over ten years but at the cost of slowing economic growth, raising inflation, and decreasing household purchasing power.

Procter & Gamble has already acknowledged that U.S. tariffs are significantly impacting their costs, particularly for raw and packaging materials and some finished goods sourced from China. In response, the company is exploring alternative sourcing options and efficiency improvements but may also have to increase prices for some products.

The Consumer Brands Association, representing major food and consumer goods companies like Procter & Gamble, has also voiced concerns. Despite most of their products being manufactured in the U.S., they face tariffs on essential imported ingredients such as wood pulp and cinnamon due to domestic shortages.

The forthcoming months will be critical for Procter & Gamble as it navigates these financial and operational hurdles while striving to maintain its market position.