Procter & Gamble announces job layoffs in cost reduction campaignThe consumer products giant Procter & Gamble said this week it would lay off thousands of workers as it works to improve its overall financial performance.

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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