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    What Procter & Gamble (PG)'s Massive Office Job Cuts and CEO Transition Mean For Shareholders

    Simply Wall St·12/08/2025 05:12:48
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    • In recent months, Procter & Gamble announced a major restructuring starting in fiscal 2026 that will cut up to 7,000 office jobs over two years, while reaffirming guidance for modest organic sales and core EPS growth amid tariff and cost pressures.
    • This combination of headcount reductions and an upcoming CEO transition to Shailesh Jejurikar on January 1, 2026 highlights how P&G is reshaping its cost base and leadership to protect profitability in a challenging demand backdrop.
    • We’ll now examine how this large office job reduction plan may affect Procter & Gamble’s longer-term investment narrative and risk profile.

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    Procter & Gamble Investment Narrative Recap

    To own Procter & Gamble, you need to believe in the resilience of its global brands, steady cash generation, and long dividend record, even while growth expectations remain modest. The announced office restructuring and CEO transition do not appear to change the near term catalyst of productivity-driven margin support, but they do sit alongside the key risk that softer demand and cost inflation could still pressure earnings.

    Against this backdrop, the plan to cut up to 7,000 office jobs starting in fiscal 2026 is especially relevant, because it directly ties into P&G’s push for productivity improvements to offset tariffs and cost pressures. How effectively those savings balance rising input and tariff costs will influence how the existing catalysts around innovation, market share defense, and ongoing shareholder returns play out over time.

    Yet investors should still be aware that tariff and commodity cost risks could materially affect margins if productivity gains underwhelm or pricing power weakens...

    Read the full narrative on Procter & Gamble (it's free!)

    Procter & Gamble's narrative projects $92.8 billion revenue and $17.8 billion earnings by 2028. This requires 3.3% yearly revenue growth and about a $2.1 billion earnings increase from $15.7 billion today.

    Uncover how Procter & Gamble's forecasts yield a $169.05 fair value, a 18% upside to its current price.

    Exploring Other Perspectives

    PG Community Fair Values as at Dec 2025
    PG Community Fair Values as at Dec 2025

    Nineteen members of the Simply Wall St Community currently see P&G’s fair value between US$119.81 and US$185.05, highlighting how far apart individual expectations can be. When you set these against the risk that tariffs and input cost inflation could weigh on margins if productivity savings fall short, it becomes clear why comparing several viewpoints before forming a view on P&G’s outlook matters.

    Explore 19 other fair value estimates on Procter & Gamble - why the stock might be worth as much as 29% more than the current price!

    Build Your Own Procter & Gamble Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.