Procter & Gamble Co. (NYSE: PG) said Thursday it plans to cut 5,700 jobs over the next year and a half as part of its plan cut costs by $10 billion by the end of 2016.
The world's largest consumer goods maker will cut 10 percent of its non-manufacturing jobs, a figure that includes 1,600 cuts announced last month, with the remaining 4,100 layoffs coming by the middle of next year.
The cuts will save the company $800 million, with the remainder coming from reducing $1 billion in marketing costs and $3 billion in overhead expenditures, according to Reuters.
We realize that we have to do it. The environment necessitates it, said P&G's Chief Executive Bob McDonald. This should make us more agile, more fast moving as an organization.
The move comes on the heels of investors calling for the company to slash overhead.
This is a great step forward for P&G, which is finally filling its coffers to execute on its expansion strategy, said Ali Dibadj, an analyst for Sanford Bernstein, according to the Financial Times. The $10 billion restructuring is meaningful and positive.
Besides cutting its payroll, the Cincinnati, Ohio, company sold Pringles snack food line to Kellogg, after an initial deal with Diamond Foods fell through.
Shares rose 42 cents to $66.84 in morning trading.