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CINCINNATI — Procter & Gamble Co. plans to cut about 5,700 nonmanufacturing jobs by the end of its 2013 fiscal year next summer.
P&G reported the workforce reduction plan Thursday on the day of its 2012 Analyst Meeting here.
The consumer products giant said the job cuts are part of cost savings objectives it announced earlier this year, including $6 billion from cost of goods sold, $1 billion from marketing efficiencies and $3 billion from core selling, general and administrative (SG&A) overhead costs.
In addition, P&G said it aims to deliver an annual 5% net productivity improvement in its manufacturing operations, as measured by the number of cases of products produced per person, per year.
At the analyst meeting, P&G also is unveiling a new goal to reduce nonmanufacturing enrollment by an additional 2% to 4% per year through fiscal years 2014 to 2016 to bolster the company’s ability to attain its savings objectives.
P&G chairman and chief executive officer Bob McDonald and the executive management team reviewed P&G’s recent results, fiscal year outlook and key growth and productivity improvement strategies at the meeting.
McDonald discussed P&G’s efforts to maintain momentum in developing markets, strengthen its core developed market business, build a strong innovation pipeline, and aggressively drive cost savings and productivity improvements.
Commenting on these priorities at P&G’s recent annual shareholders meeting, McDonald stated, "Our plan is decisive, simple and focused — grow our core and win with innovation fueled by productivity. We’re confident that our growth and productivity strategies will enable P&G to generate superior levels of shareholder return in both the short- and long-term."
P&G’s recent and near-term product innovations, include Tide PODS, Downy Unstopables, ZzzQuil, Cascade Platinum, Crest Pro-Health for Life, Fusion and Mach3 Sensitive, Olay Fresh Effects, Pantene Expert Collection, Vidal Sassoon Pro Series, Illumina Color from Wella Professional, and several new fragrance innovations for the Gucci, Hugo Boss and Dolce & Gabbana brands. The company said it also aims to strengthen its pipeline of discontinuous innovations, those that make current products obsolete and create new categories and new brands.
