Accelerating Growth
and Value Creation
There are times when continuous improvement of each element of our strategy is enough to deliver the near-term objectives we have set and to prepare us for the next phase of growth and value creation. However, at times, there is a need for a bigger step forward to bolster P&G’s growth and value creation, and we are making changes to unlock significant opportunity for stronger delivery of P&G’s integrated growth strategy.
This is not a new approach, rather an intentional strengthening of our current strategy to widen our margin of advantage in superiority fueled by productivity to win in the increasingly challenging environment in which we compete.
There are three main areas of focus: portfolio, supply chain and organization design.
The portfolio choices include exits of some categories, brands and product forms in individual markets. They may also include some brand divestitures.
These portfolio moves enable us to make related interventions in our supply chain — right-sizing and right-locating production to drive efficiencies, faster innovation, cost reduction, and even more reliable and resilient supply.
Finally, we are making additional changes to ensure an even more agile, empowered and accountable organization design — making roles broader, teams smaller, work more fulfilling and more efficient, leveraging digitization and automation. Smaller teams with greater breadth of skills will work on an integrated end-to-end basis — from consumer understanding to design and execution — eliminating the siloed approach to work, creating more integrated ways of working, broadening employee skills to empower decision making, increasing individual contribution and development, and improving the employee value equation.
Across these three areas — portfolio, supply chain, organization — we expect to reduce up to 7,000 non-manufacturing roles, or approximately 15% of our current non-manufacturing workforce, over the next two years.
Taken together, these actions are intended to widen our margin of advantage in superiority leading to growth and value creation.
VARIOUS STATEMENTS IN THIS ANNUAL REPORT, including estimates, projections, objectives and expected results, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are generally identified by the words “believe,” “expect,” “anticipate,” “intend,” “opportunity,” “plan,” “project,” “will,” “should,” “could,” “would,” “likely” and similar expressions. Forward-looking statements are based on current assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from the forward-looking statements, including the risks and uncertainties discussed in Item 1A – Risk Factors of the Form 10-K included in this Annual Report. Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise publicly any forward-looking statements, except as required by law.