Procter and Gamble to Slash 5,700 Jobs

Procter & Gamble on Thursday said it will cut 5,700 jobs -- or 10% of its global workforce -- by the end of 2013 as part of a four-year restructuring aimed at cutting costs by $10 billion.

Approximately 1,600 jobs will be eliminated this year and 4,100 in 2013, for a savings of $800 million, P&G said at an investors conference.

Under the four-year restructuring plan, the company said it expects to achieve $3 billion in savings on fixed costs by boosting productivity.

The restructuring through 2015 also is planned to shave off $6 billion in production costs, including a $1 billion reduction for marketing and cuts in research and development.

The Cincinnati-based company has a presence in about 180 countries, and its brands include Tide laundry detergent, Gillette razors, Wella hair-care products and Duracell batteries.

But the company has been facing punishing increases in commodity costs.

P&G in late January announced a 49% profit drop in its fiscal second quarter, to $1.7 billion, and lowered its earnings projections.

Investors applauded the news. Shares closed 3.1% higher at $66.42 on Thursday.

Copyright Agence France-Presse, 2012