P&G to cut about 15 percent of management staff: media reports
(Reuters) - Procter & Gamble Co <PG.N> said it will cut about 15 percent of its management staff and reduce worldwide employee relocation to combat rising commodity costs and reduced consumer spending, according to media reports.
The company, whose brands include Gillette, Tide, Olay and Pantene, aims to accelerate annual productivity growth from 6 percent to 7 or 8 percent over the next five years as it completes the integration of its $57 billion takeover of Gillette, according to the Financial Times.
P&G will increasingly focus its efforts around the 41 brands with sales of more than $500 million -- such as Tide detergent and Swiffer cleaners -- that account for more than 90 per cent of its profits, the report said.
Another report in the St. Louis Business Journal said the world's largest household and personal-care products maker also plans to reduce the number of the distribution centers it operates globally by half.
"We're committed to flat or declining headcount for the foreseeable future," the St. Louis report quoted P&G CEO A.G. Lafley as saying at the Consumer Analysts Group of New York Conference in Boca Raton, Florida on February 21.
P&G also plans to avoid duplication between organizations, and could cut about 10 percent to 20 percent of its "initiative development" among global, regional and local teams, Lafley added.
(Reporting by Dhanya Skariachan in Bangalore; ; Editing by Anthony Kurian)