[SINGAPORE] Procter & Gamble (P&G) has so far stayed silent about how its planned reduction of about 15 per cent of its global non-manufacturing workforce over the next two years will affect its operations in Singapore.
The consumer goods giant had on Thursday (Jun 5) announced at a Deutsche Bank conference in Paris that it would cut up to 7,000 such roles worldwide, and undertake a corporate restructuring that would involve divesting some of its brands.
P&G employs some 2,300 people in Singapore, which is home to its Asia-Pacific headquarters and a major research-and-development facility; the company also announced plans two years ago to build a manufacturing facility in Singapore.
Its top executives said that the restructuring is part of a two-year effort to keep the company agile amid what it described as an “increasingly challenging” environment, marked by geopolitical unpredictability and fierce competition.
Muted demand, tariffs cloud outlook
When approached by The Business Times on Friday, P&G did not address questions on whether the job cuts would affect its Singapore headcount or its operations.
Instead, the company referred BT back to a summary on its website, which carries the same remarks delivered at the Paris conference made by its chief financial officer Andre Schulten and chief operating officer Shailesh Jejurikar. The website only says that what is there is “the most up-to-date information we have at this time”, and that “specific impacts by region or site are not available at this time”.
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It says, however, that it would manage the planned layoffs with “support and respect, and in line with our principles and values and local laws”.
Referring to the brand divestitures, P&G’s summary says details will be shared in the months ahead, and that its moves would enable the company to “right-size and right-locate” production.
The changes to be made, it said, would not only enable the company to reduce costs, but also let it develop new products and beef up the strength of its supply chain.
Reuters reported that P&G’s announcement comes as the company and other consumer-goods firms brace themselves for higher costs amid trade tensions and muted consumer demand.
In April, P&G said it would raise prices on some products and was prepared to “pull every lever” to mitigate the impact of the sweeping tariffs introduced by US President Donald Trump, which have roiled global markets and stoked recession fears in the United States – its largest market.
In Singapore, retail sales rose just 0.3 per cent year on year in April, with economists pointing to tariff uncertainty and weaker discretionary spending.
OCBC’s Selena Ling said trade tensions could weigh further on sentiment, noting that “the outcome of the tariff negotiations between US and numerous other countries ahead of the 90-day grace period, especially China, will be key to the risk and growth outlook”.
BT previously reported in November 2023 that P&G Singapore had hired 2,300 employees of more than 40 nationalities
Besides being the company’s Asia-Pacific headquarters, Singapore is the global headquarters for SK-II, the premium cosmetics brand under P&G’s portfolio, and its broader skin and personal care businesses.
Other brands in the group’s stable include haircare labels Pantene and Head & Shoulders, as well as skincare brand Olay.
Before setting up its Singapore Innovation Centre, one of the largest private research facilities in Singapore, in Biopolis in 2014, P&G had also set up a perfume manufacturing facility in Tuas in 2008.
