Procter and Gamble to cut 5,700 jobs

NEW YORK - Agence France-Presse

Procter & Gamble CEO Robert McDonald speaks during a press event. AP photo

U.S. consumer goods giant Procter & Gamble said on Feb. 23 that it would cut 5,700 jobs, or 10 percent of its global workforce, by the end of 2013 as part of a four-year restructuring aimed at cutting costs by $10 billion.

About 1,600 jobs will be eliminated this year and 4,100 in 2012, for a savings of $800 million, P&G said at an investors conference.

Under the four-year restructuring, the company said it expects to achieve $3 billion in savings on fixed costs by boosting productivity.

The restructuring through 2015 is also planned to shave off $6 billion in production costs, including a $1 billion reduction for marketing and cuts in research and development.

The Cincinnati, Ohio-based company is present in about 180 countries and its brands include Tide laundry detergent, Gillette razors, Wella hair care products and Duracell batteries.

But the company has been facing punishing rises in commodity costs.

P&G announced in late January a 49 percent profit drop in its fiscal second quarter, to $1.7 billion.