PG · 10-K · 2026A · Full report
Headcount / Restructuring
PROCTER & GAMBLE Co · 2026-08-04 · Importance 46 · Surprise 42 · No source text
P&G announced a focused portfolio, supply chain and productivity plan in June 2025 that is expected to generate approximately $1.5 billion to $2.0 billion of before-tax restructuring costs over two years. The Company incurred more than half of the planned costs in fiscal 2026, with the remainder expected in fiscal 2027. The restructuring spans Sector Business Units, Enterprise Markets, Corporate Functions and Global Business Services and includes reducing up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027. Higher restructuring costs reduced fiscal 2026 gross margin by 60 basis points.
Key facts
- The restructuring activities include a plan for a reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027. source
- P&G announced in June 2025 a portfolio and productivity plan and expects to incur approximately $1.5 to $2.0 billion in before-tax restructuring costs over a two-year period. source
- P&G incurred over half of the costs under the June 2025 plan in fiscal 2026, with the remainder expected in fiscal 2027. source
- In June 2025 the Company announced a two-year portfolio and productivity plan and in fiscal 2026 incurred incremental restructuring charges of $903 million after tax under the program. source
- In the fiscal year ended June 30, 2024, P&G recorded incremental restructuring charges of $801 million after tax related to liquidation of operations in Argentina during the period ended September 30, 2024. source
- Total incremental restructuring charges under the limited market portfolio restructuring from the three-month period ended December 31, 2023 through the three-month period ended September 30, 2024 were $1.2 billion after tax. source
- In the period ended September 30, 2024, the Company completed a limited market portfolio restructuring with total incremental restructuring charges of $1.2 billion after tax. source
- The Company historically has an ongoing restructuring program with annual spending in the range of $250 to $500 million before tax. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -1.0% | In June 2025 the Company announced a two-year portfolio and productivity plan and in fiscal 2026 incurred incremental restructuring… |
| operating_income | negative | probable | -1.0% | P&G announced in June 2025 a portfolio and productivity plan and expects to incur approximately $1.5 to $2.0 billion in before-tax… |
| operating_income | positive | probable | — | The restructuring activities include a plan for a reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027. |