You’ve probably seen the headlines about the 7,000 job cuts or the weirdly specific focus on "Focus Markets." But honestly, what’s actually going on inside the world’s biggest soap and diaper maker isn't just a simple cost-cutting drill. It is a massive, multi-year teardown of a 180-year-old engine.
Procter & Gamble restructuring isn't a one-time event; it’s basically been a permanent state of being since about 2018. If you look at the recent moves in early 2026 and late 2025, the company is doubling down on a structure that feels less like a corporate pyramid and more like a collection of agile speedboats.
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The End of the "Corporate Overlord" Era
For decades, if you worked at P&G in, say, France, you didn't just report to your boss in Paris. You had to answer to regional heads in Geneva and global heads in Cincinnati. It was slow. It was bulky. It was, frankly, a mess of red tape that allowed nimble direct-to-consumer brands to eat their lunch.
Then came the "GTE" or Global Technical Enterprises model shift. Starting around 2019, David Taylor (the former CEO) started chopping. He streamlined the company into six—and eventually five—industry-based Sector Business Units (SBUs).
These units are:
- Baby, Feminine and Family Care
- Beauty
- Health Care
- Grooming
- Fabric and Home Care
The big change? These SBUs now have their own CEOs. They own their own profit and loss (P&L). If a Tide pods launch fails in North America, the SBU CEO can't point fingers at a "central marketing committee." They own it. Honestly, it’s about accountability. P&G shifted nearly 60% of the work previously done at the corporate level directly into these business units.
Why 7,000 People Are Leaving
In June 2025, CFO Andre Schulten dropped a bombshell at the Deutsche Bank Consumer Conference. The company is cutting up to 7,000 non-manufacturing roles by the end of fiscal 2027.
Wait. Why cut people when profits are actually decent?
It’s about "productivity" as a fuel for "superiority." That’s P&G-speak for: We need to save money on back-office stuff so we can spend it on making Dawn dish soap better than the generic version. They are aiming to save billions in costs across supply chains and "right-sizing" their production.
They are also cleaning house in "Enterprise Markets." While "Focus Markets" like the U.S. and China make up 90% of their profit, the rest of the world (the Enterprise Markets) has been a bit of a drag. We saw them essentially liquidate operations in Argentina and pull back in Nigeria during late 2024 and 2025 because the math just didn't work anymore.
The "Nelson Peltz" Shadow
You can’t talk about Procter & Gamble restructuring without mentioning the billionaire activist investor Nelson Peltz. Back in 2017 and 2018, he fought a very public, very expensive battle for a board seat.
Peltz's main gripe? P&G was too complex. He wanted a "holding company" structure. While the company didn't go as far as he wanted, they clearly took his advice to heart. The current "empowered" SBU model is a direct result of that pressure to simplify.
Jon Moeller’s New Reality
When Jon Moeller took the reins from David Taylor in 2021, most people expected a steady hand. But Moeller has been aggressive. He’s the one who had to navigate the post-pandemic inflation nightmare.
In the 2026 fiscal first quarter results, we saw organic sales growth of 2%. That sounds small, but in a world of 2026 tariffs and supply chain "resilience" costs, it’s actually winning. Moeller is betting the farm on "constructive disruption." Basically, they want to disrupt themselves before a startup does.
What This Actually Means for You
If you’re a consumer, this means P&G is terrified of you buying a "private label" brand (like Amazon Basics or a grocery store brand). To fight that, they are obsessed with "Irresistible Superiority."
- Packaging: Making sure your laundry detergent lid doesn't leak.
- Retail: Ensuring the product is always on the shelf, even if there's a port strike.
- Value: Proving that the $15 bottle of Tide is actually cheaper per load than the $10 generic stuff because it cleans better.
Actionable Insights for Investors and Professionals
If you are tracking the P&G moves for your own business or portfolio, here is what to watch for next:
- Monitor the "Brand Pruning": P&G is currently looking at exiting certain product categories that don't fit their "daily use" criteria. If a brand doesn't have a clear path to being #1 or #2 in its category, expect it to be sold off.
- Watch the Margin Expansion: The goal of the 7,000-person layoff isn't just to survive; it’s to widen the "margin of advantage." Check the quarterly reports for SG&A (Selling, General, and Administrative) expense reductions. If those costs aren't dropping, the restructuring is stalling.
- The China Factor: Greater China is a massive part of the "Focus Markets." Any restructuring of their supply chain there to avoid tariffs is going to be expensive upfront but vital for long-term survival.
P&G is no longer trying to be everything to everyone. They are trying to be a lean, high-tech manufacturer of the ten things you use every single day. It’s a gamble, but for a 187-year-old company, staying still was the only real risk.