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 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 2 Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
- 3 Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
- 4 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
- 5 Google search history can now be downloaded in its entirety, mass embarrassment expected
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
Katie Hopkins on LBC: Listen to caller taking The Sun columnist to task over migrant comments
iJobs Money & Business
£12000 - £15000 per annum: Recruitment Genius: An expanding Insurance Brokerag...
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...