Core Insights - Procter & Gamble (P&G) announced a plan to lay off 7,000 employees, representing 6% of its total workforce, to cut costs and respond to slowing demand and uncertainties from tariffs [1][2] - The layoffs will affect approximately 15% of non-manufacturing employees, with the total global workforce at 108,000 as of June 30, 2024 [1] - P&G plans to exit certain categories, brands, or product forms in specific markets, restructure its organization, and may even sell some brands [1] Economic Context - The trade tensions and tariff policies initiated by the Trump administration have increased operational costs for companies like P&G, while consumer demand is weakening [2] - P&G has raised prices on certain products and has lowered its sales and profit forecasts due to increased consumer caution [2] - The company now expects organic sales growth for fiscal year 2025 to be only 2%, down from a previous forecast of 3% to 5%, indicating a deteriorating market environment [2] Strategic Response - P&G's executives stated that the layoffs and related adjustments are not sudden changes but an acceleration of the current strategy aimed at strengthening the company's position in a challenging market [2] - Adjustments to the product portfolio are expected to help the company optimize its supply chain and reduce costs [2]