11:12 AM EDT, 06/05/2025 (MT Newswires) -- Procter & Gamble ( PG ) plans to reduce up to 7,000 non-manufacturing jobs and exit brands in certain markets as part of the consumer goods company's two-year restructuring program to streamline operations.

The maker of Crest toothpaste and Pampers diapers expects to lay off about 15% of its non-manufacturing workforce over the next two fiscal years, it announced at a Deutsche Bank conference Thursday.

"We see more opportunities to make roles broader and teams smaller, making work more fulfilling, faster and more efficient, leveraging digitization and automation opportunities," Chief Financial Officer Andre Schulten said during the conference, according to a FactSet transcript.

The two-year restructuring program is expected to begin in fiscal 2026, focused on portfolio choices, supply chain optimization, and organization design, Procter & Gamble ( PG ) said in a filing. The program also includes brand exits from certain markets, with the details to be disclosed at a later date, according to the filing.

The company expects to record a pretax non-core charge of $1 billion to $1.6 billion over the course of the restructuring program. The stock was down 1.8% in Thursday trade.

"This restructuring program is an important step toward ensuring our ability to deliver our long-term algorithm over the coming two to three years," according to Schulten. "It does not, however, remove the near-term challenges that we currently face."

Procter & Gamble ( PG ) forecasts a per-share headwind of around $0.03 to $0.04 in its fiscal fourth quarter, based on current tariff rates, Schulten told analysts. The current consensus on FactSet is for non-GAAP EPS of $1.42 for the quarter. For fiscal 2026, the tariff headwind is estimated to be about $600 million before tax, the CFO added.

"The point of volatility impacting our business have only increased as the current year has progressed and as we do our detailed financial plan for fiscal year 2026," Schulten said. Category growth rates in the US have decelerated to about 2% from around 4% in the previous calendar year, while European markets have seen similar trends, according to Schulten.

Tensions between the US and China renewed after the two accused each other of violating the preliminary deal reached last month. US President Donald Trump said in a social media post Thursday that he had a call with Chinese President Xi Jinping that "resulted in a very positive conclusion for both countries."

Recently, the US Court of International Trade ruled that Trump overstepped his authority by imposing duties under the International Emergency Economic Powers Act, but a federal appeals court temporarily paused that decision.

In April, Trump declared a 90-day pause on certain tariffs for countries that didn't retaliate to his reciprocal duties.

Procter & Gamble ( PG ) is closely monitoring developments related to China to "see if trade tensions and lower exports disrupt the slow recovery we have been seeing," Schulten said at the conference.

"Tariffs introduce additional volatility we're watching closely, including direct costs from moving raw materials and finished products across borders, impacts on foreign exchange and interest rates, and potential impacts of nationalistic consumer behavior," according to Schulten.

Price: 163.98, Change: -1.99, Percent Change: -1.20