Procter & Gamble cutting up to 7,000 jobs amid tariffs, consumer uncertainty

President Trump announces double tariffs on steel

President Trump announced Friday that he is doubling tariffs on steel imports from 25 percent to 50 percent. The announcement came during a rally at a steel plant in West Mifflin, Pennsylvania.

Procter & Gamble, the maker of Tide detergent and Pampers diapers, says it will cut up to 7,000 jobs over the next two years.

The cuts are part of a restructuring program that also includes ending sales in certain markets. The news comes at a time when tariffs are raising costs for American companies and consumers are growing anxious about the economy.

Procter & Gamble job cuts

What they're saying:

"This restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years," Chief Financial Officer Andre Schulten said. "It does not, however, remove the near-term challenges that we currently face."

Procter & Gamble logo (Photo by Cheng Xin/Getty Images)

By the numbers:

The job cuts make up approximately 6% of the company's global workforce, or about 15% of its nonmanufacturing positions. 

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Procter & Gamble, based in Cincinnati, had approximately 108,000 employees worldwide in June 2024.

Big picture view:

Like many companies, Procter & Gamble is dealing with American consumers who are worrying about their spending as they keep an eye on inflation.

U.S. consumer sentiment fell slightly in May for the fifth straight month, surprising economists. Since January, sentiment has tumbled nearly 30%.

RELATED: Retailers shift supply chains to reduce risks from Trump’s tariffs on China

And on Wednesday, the Congressional Budget Office released an analysis that said that President Donald Trump’s sweeping tariff plan would shrink the economy, raise the inflation rate and reduce the purchasing power of households overall.

Procter & Gamble said the biggest U.S. tariff impacts were coming from raw and packaging materials and some finished product sourced from China. The company said that it would be looking at sourcing options and productivity improvements to mitigate the tariff impact, but that it may also have to raise prices on some products.

What's next:

Procter & Gamble said it will provide more details about ending sales in certain markets in July.