Manufacturer Procter & Gamble to cut 1,600 jobs
1 February 2012
The consumer product manufacturer has announced that it will be cutting jobs due to its recent quarterly earnings.
The world's largest consumer goods group, Procter & Gamble (P&G), owner of brands such as Ambi Pur, Bold, Duracell and Pringles, has revealed that it will be cutting as many as 1,600 jobs globally that will save the company $240m a year.
The company has also announced that its net earnings were down by 49% to $1.69bn. However P&G’s net sales and organic sales increased by 4% for the quarter, but this was offset by higher commodity costs.
The company’s second quarter results state: "During the quarter, the Company took a non-cash charge of $1.5 billion after tax, or $0.50 per share, to adjust the carrying values of goodwill in the Appliances and Salon Professional businesses, and trade name intangible assets in the Salon Professional business.
Chairman Bob McDonald said he expects P&G's advertising costs to moderate as it distribute more spending into digital media like Facebook and Google, where the sheer number of options and availability of largely free distribution drives down expenses.
P&G still expects to spend between 9% and 11% of sales on advertising in the long term and is stepping up spending this quarter and next behind its Olympics sponsorship-related campaign, which he said the company expects to add $500 million in incremental revenues.
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