Officials from the company said Thursday that they would eliminate 5,700 positions over the next 18 months in a strategic business cost reduction initiative. Coupled with other ongoing cost-cutting measures, the planned layoffs will help Procter & Gamble save an estimated $10 billion by the end of the company's 2016 fiscal year, officials asserted.
Procter & Gamble has witnessed mounting competition in its core consumer products market, and has been adversely affected by volatile commodity prices. The company has also had to contend with a lackluster economic climate in the U.S., which has prompted a contraction in consumer spending that has hurt earnings.
The cost reduction initiative will help Procter & Gamble improve efficiency and boost profitability over the next four years, according to analysts. Moreover, experts said that a renewed focus on supply chain management would also bolster earnings over the short- and long-term. The Associated Press reports that the Cincinnati, Ohio-based company will complete the announced layoffs by the end of its 2013 fiscal year.
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