P&G to cut 15% of management staff
Procter & Gamble will cut about 15% of its management staff as part of a bid to improve productivity and accelerate growth, the company said on Monday.
By TNN |
NEW YORK: Procter & Gamble will cut about 15% of its management staff as part of a bid to improve productivity and accelerate growth, the company said on Monday. The vast majority of the job cuts will come through attrition as employees retire or leave the company, P&G spokesman Paul Fox said.
The maker of Pampers diapers, Crest toothpaste and a host of other personal care and household products also said it is aiming to raise annual productivity growth ���or the value of sales per employee ���from 6% to 7% or 8% over the next five years.
Fox said the company will increasingly focus its efforts on the 41 brands that generate annual sales of more than $500 million ���such as Tide detergent and Swiffer cleaners.
Those brands produce more than 90% of the company���s profits, chief executive AG Lafley said last week at the Consumer Analysts Group of New York conference in Florida. P&G also said it plans to reduce the number of distribution centres it operates globally by half.
���We���re committed to flat or declining headcount for the foreseeable future,��� Lafley said at the conference. ���We will continue to invest in our faster growing businesses.��� P&G is also aiming to eliminate duplication between organisations, he said. The company���s shares were up 33 cents to $66.54 in early trading on the New York Stock Exchange.
The maker of Pampers diapers, Crest toothpaste and a host of other personal care and household products also said it is aiming to raise annual productivity growth ���or the value of sales per employee ���from 6% to 7% or 8% over the next five years.
Fox said the company will increasingly focus its efforts on the 41 brands that generate annual sales of more than $500 million ���such as Tide detergent and Swiffer cleaners.
Those brands produce more than 90% of the company���s profits, chief executive AG Lafley said last week at the Consumer Analysts Group of New York conference in Florida. P&G also said it plans to reduce the number of distribution centres it operates globally by half.
���We���re committed to flat or declining headcount for the foreseeable future,��� Lafley said at the conference. ���We will continue to invest in our faster growing businesses.��� P&G is also aiming to eliminate duplication between organisations, he said. The company���s shares were up 33 cents to $66.54 in early trading on the New York Stock Exchange.
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