Consumer products maker Procter & Gamble said on Thursday that it would eliminate 5,700 jobs over the next year and a half as the company unveiled a plan to cut $10 billion in costs over the next four years.
The cuts include eliminating 4,100 nonmanufacturing positions in fiscal 2013, which comes on top of 1,600 job cuts in its current fiscal year. That would yield annual savings of $800 million before tax by fiscal year 2014 and $1 billion in savings by fiscal year 2016.
Procter & Gamble’s chief executive Robert A. McDonald announced the move at the Consumer Analyst Group of New York conference.
The other cost savings include $6 billion from using less expensive packaging materials and other efficiencies in the supply chain and $1 billion in cuts to marketing spending by shifting to digital and other forms of advertising.
The cuts are expected to cost Procter & Gamble $3.5 billion in restructuring costs over the next four years.
The company has experienced slowing sales in the U.S. as consumers continue to spend cautiously. Also Procter & Gamble is not getting the same benefits from foreign currency exchanges that it enjoyed last year.
At the same time, the company continues to expand in emerging markets through much of its sales growth. It already owns around 140 manufacturing plants across the globe. Hiring will continue in growth areas such as China and other emerging markets.
The company will also continue to spend on initiatives it sees as key for its growth. These include marketing new products such as the single-unit Tide Pods in North America and expanding Oral B in Latin America.