Job cuts forecast at P&G

PROCTER & Gamble is expected to reduce manpower headcount on the heels of the sale of several of its beauty brands.

The $15 billion sale to Coty of P&G brands such as Wella, CoverGirl, and MaxFactor is forecast to translate to another wave of job cuts that could affect 10,000 workers around the world, including about 1,500 in the US.

The company’s annual report filed with the US Securities & Exchange Commission indicated its workforce totals 110,000. This already represents a 6.8% cut from the previous fiscal year’s headcount, which totaled 118,000 workers worldwide.
 
P&G’s employment number is expected to fall below 100,000 after the closure of the brands sale to Coty. The last time the company had a head count this low was 2003, when it employed 98,000.

The job cuts come at a time when P&G’s earnings are taking a beating. Profits went down 40% during the fiscal year ended June, with the company generating $7.1 billion as opposed to nearly $11.8 billion in fiscal 2014.

The transaction with Coty, which is expected to close in late 2016, will also transfer ownership of eight factories and nine distribution centers, including three US facilities.