P&G to cut 10, 000 jobs after selling half its brands

By Zhang Fang
0 Comment(s)Print E-mail China.org.cn, August 15, 2014
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The world's largest consumer products company Procter and Gamble Co (P&G) will cut about 10,000 jobs globally after selling or suspending more than 100 its brands next year.

Global consumer products giant Procter and Gamble Co will cut about 10,000 jobs globally after selling or suspending more than 100 of its brands next year. [File photo]

Global consumer products giant Procter and Gamble Co will cut about 10,000 jobs globally after selling or suspending more than 100 of its brands next year. [File photo] 

"I can't tell now which the final 70 to 80 brands [that we will carry forward] will be, but each one will be a strategic brand with large growth potential. They will be the top brands in their sectors," Liang Yun, PR director of P&G Greater China told the Beijing Morning Post.

One reason for the swift action is the challenge from the slowing economy in China and the world. But the main reason is still profitability. Revenues in nine of the past 13 quarters were lower than expectations. In the latest quarter, P&G's net sales continued to shrink to US$ 20.16 billion, down by 1 percent, the newspaper said.

At the same time, it is estimated that the company's top 70-80 brands generate 95 percent of its profits. CEO A.G. Lafley said, "If it's not a core brand — I don't care whether it's a US$2 billion brand, it will be cut."

In the wake of selling the brands, the company will cut down jobs globally. The executive said they will keep the layoffs below 10, 000.

In China, it has been confirmed that Cecilia Li, sales president of P&G has left the firm along with six other C-level executives.

But an insider said the shift won't make a big impact on China's market in the short term. Only around 20 of the company's 200 brands have been launched in China in the past 20 years, but many of them have become household brands that almost every Chinese family would buy.

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