Procter & Gamble projects $1 billion hit from Trump’s tariffs
Procter & Gamble warns of $1 billion in additional costs due to President Trump’s tariffs. (Scripps News)
Scripps News
- Procter & Gamble will cease its business operations in Pakistan as part of a larger restructuring plan.
- The company will instead use third-party distributors to sell its products in the country.
- This decision follows similar withdrawals from Bangladesh, Argentina, and Nigeria.
Procter & Gamble will halt business operations in Pakistan as part of its two-year restructuring plan, according to a news report.
The Cincinnati-based consumer products giant has disclosed it plans to wind down its manufacturing and commercial activities in Pakistan and rely on third-party distributors to continue to serve customers in the country, according to Reuters.
P&G exit part of restructuring
The move comes after P&G said it would pull out of Bangladesh as part of its plans to cut 7,000 nonmanufacturing jobs, announced in summer. By mid-2027, the maker of Tide detergent and Gillette razors said it would cut 6.4% of its 109,000 employees worldwide to free up money to reinvest into its business.
P&G’s plans to slim down weigh heavily on its hometown where the company employs around 10,000 mostly office workers.
International sales part of sluggish performance
P&G’s cuts come after its 2024 organic sales growth (which excludes the impact of foreign exchange, acquisitions and divestitures) slowed to a seven-year low. The company vowed to review its operations, including sluggish international markets.
In July, P&G revealed its core markets of the U.S., China, Japan, Canada and Western Europe saw organic sales growth of 2% last year versus “enterprise markets” lagged growing just 1%. P&G has exited whole countries before: last year it shut down operations in Argentina and Nigeria in 2023.
