Core Viewpoint - Procter & Gamble (P&G) is undergoing a leadership change with CEO Jon Moeller stepping down and COO Shailesh Jejurikar taking over, amid challenges such as slowing organic growth and rising costs [1][3][4] Leadership Transition - Jon Moeller's tenure as CEO lasted less than four years, during which P&G's stock rose approximately 13%, aligning closely with the S&P 500 index [1] - Shailesh Jejurikar, who has been with P&G for 36 years, will officially assume the CEO role on January 1, 2026 [3] Financial Performance and Market Conditions - P&G's stock price closed at $157 on July 28, 2023, reflecting a decline of about 6% year-to-date [4] - The company lowered its sales and profit guidance for the fiscal year in April, attributing this to cautious consumer spending [4] - P&G anticipates organic sales growth of 2% for 2025, down from a previous forecast of 3%-5% [4] Restructuring Plans - P&G is implementing a "non-core business restructuring plan" aimed at streamlining its product portfolio and exiting certain categories [5][16] - The company plans to cut 7,000 jobs over the next two years, representing a 15% reduction in non-manufacturing roles [6] - The restructuring is expected to have a negative impact of 30-50 basis points on organic sales growth over the next two fiscal years [16] Market Challenges - P&G faces challenges in its beauty and healthcare segments, with declines in baby and feminine care categories offsetting growth [7] - The company's organic growth rate has decreased from 7% to 4% and then to 2% over the past seven years, raising concerns among investors about its growth trajectory [7] Strategic Focus - P&G's management emphasizes a shift away from reliance on price increases for growth, as consumer spending becomes more cautious [11] - The company is focusing on improving operational efficiency through automation and digitalization, with a projected pre-tax cost of $1-1.6 billion for the restructuring [11][16] - P&G aims to maintain a focused portfolio of brands with scalable profit potential, indicating that transformative acquisitions are not a key part of its growth strategy [17]

Core Viewpoint - Procter & Gamble (P&G) plans to lay off 7,000 employees globally, approximately 15% of its non-manufacturing workforce, as part of a restructuring plan over the next two years, which also includes divesting certain brands and categories [1][2] Group 1: Restructuring and Layoffs - The layoffs are part of a two-year restructuring plan aimed at brand exits, supply chain adjustments, and organizational streamlining due to slowing growth in the U.S. market and rising tariffs [2] - P&G has previously undergone significant layoffs, including a reduction of 5,700 jobs in 2012 [2] - The restructuring is driven by three main pressures: rising tariff costs, weak consumer demand, and performance volatility [2] Group 2: Financial Performance - In Q3 of fiscal year 2025, P&G reported net sales of $19.8 billion, a 2% year-over-year decline, marking the first drop in eight years for this quarter [3] - The net profit for the same quarter was approximately $3.8 billion, remaining stable year-over-year, largely due to price increases [3] - P&G lowered its organic sales growth forecast for fiscal year 2025 from 3%-5% to 2% due to tariff uncertainties [3][5] Group 3: Brand Performance - The beauty segment, which includes brands like SK-II and Olay, experienced the most significant decline, with net sales down 5% and net profit down 13% year-over-year [4] - The performance of SK-II has been particularly poor, attributed to safety concerns raised in 2023 and increased competition from brands like Estée Lauder and Shiseido [6][8] - P&G is reassessing its brand portfolio and may announce divestiture plans in the coming months [9] Group 4: Market Challenges - The company faces challenges in the Chinese market, with organic sales down 15% in Q1 of fiscal year 2025, and a continued decline in subsequent quarters [5][7] - P&G has been strategically divesting over 100 brands since 2015 to focus on core businesses, including recent closures and sales of brands like Opte and Sassoon [8] - The rise of local Chinese brands is increasingly impacting P&G's market share and performance in China [8]