P&G axe hangs over UK jobs
Saturday 05 June 1999
Procter and Gamble is due to announce the results of its restructuring programme next week and analysts fear that its UK operations, which employ 6,000 staff, could bear the brunt of the cutbacks.
The UK is one of P&G's key production sites outside the US, employing about a fifth of its entire European workforce. Last week P&G axed 380 jobs in Wakefield.
Analysts expect that the lion's share of the cuts will take place outside the US and say the UK, which has not been chosen as the "global business unit" headquarters, is vulnerable to considerable job losses.
P&G has experienced sluggish growth in several key markets and is in the throes of a reorganisation called Organisation 2005.
Eric Jonnaert, P&G's European spokesperson, confirmed that the group will be holding an analysts' meeting next Wednesday to discuss the first fruits of the restructuring, led by Durk Jager, the new chief executive.
According to reports in the US yesterday, the Cincinnati-based company will cut thousands of jobs and close several underperforming plants, including several abroad.
Mr Jager, a Dutch executive with plenty of experience in Europe and Asia, has pronounced himself unhappy with the company's pipeline of new products, its global structure, and the tendency for corporate thinking to get stuck in a rut.
The new plan, developed over the past year, will involve reorganising the company into seven product divisions, known as global business units rather than geographical units.
Mr Jonnaert confirmed that Brussels would be the headquarters for the fabric and homecare division, which produces leading brands such as Ariel and Fairly Liquid.
Mr Jonnaert said: "This is a major reorganisation in the company. We need to streamline the organisation and give it more focus to compete in a global market."
The restructuring is expected to involve charges of $2-3bn and is in keeping with Mr Jager's reputation for cost-cutting.
He won his spurs by reshaping the company's operations in Japan in the 1980s.
P&G has plants all over the world, and a global workforce of 110,000. It produces leading brands such as Pampers, Tide and Crest toothpaste.
The aim is to sharpen the company's ability to turn new research into products that command market share globally in the shortest possible time.
P&G has been under pressure from rivals such as Unilever, the Anglo-Dutch company chaired by Niall Fitzgerald.
- 1 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 2 Dog thinks owner is drowning in lake, dives in and tries to pull him out
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
- 5 Narendra Modi: Indian Prime Minister wears suit with pinstripes that spell his name to meet Barack Obama
Asteroid narrowly scrapes past Earth: how to watch the closest space rock for decades as it flies by
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Greece elections: Greek PM Alexis Tsipras takes aim at 'neo-liberal' Europe as country gears up for prolonged austerity battle
Pornhub star Mia Khalifa receives death threats after being ranked the site's top adult actress
Prince Philip set to be knighted by Australia: Celebrate by reading his greatest gaffes
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
Leaked documents show Ukip leaders approve NHS privatisation once it becomes more 'acceptable to the electorate'
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...