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.
Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'
Emergency call 'started off dumb, but got pretty serious'
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Axe wielding man shot dead after attacking four New York policemen on busy street
- 3 Watch what happened when food critics were unknowingly served McDonald's
- 4 Jimmy Carr's Oscar Pistorius joke goes a bit too far at the Q Awards
- 5 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
Renee Zellweger on plastic surgery rumours: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Axe wielding man shot dead after attacking four New York policemen on busy street
This 'woman calls police to order pizza' story isn't going where you're expecting
Jimmy Carr's Oscar Pistorius joke goes a bit too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...