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Procter & Gamble to slash 5,700 jobs

/ 07:35 AM February 24, 2012

NEW YORK—US consumer goods giant Procter & Gamble said Thursday it would cut 5,700 jobs, or 10 percent of its global workforce, by the end of 2013 as part of a four-year restructuring aimed cutting costs by $10 billion.

About 1,600 jobs will be eliminated this year and 4,100 in 2012, for a savings of $800 million, P&G said at an investors conference.

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Under the four-year restructuring, the company said it expects to achieve $3 billion in savings on fixed costs by boosting productivity.

The restructuring through 2015 also is planned to shave off $6 billion in production costs, including a $1 billion reduction for marketing and cuts in research and development.

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The Cincinnati, Ohio-based company has a presence in about 180 countries and its brands include Tide laundry detergent, Gillette razors, Wella hair care products and Duracell batteries.

But the company has been facing punishing rises in commodity costs.

P&G announced in late January a 49 percent profit drop in its fiscal second quarter, to $1.7 billion, and lowered its earnings projections.

Investors applauded the news. Shares closed 3.1 percent higher at $66.42.

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