NEW YORK (AP) — Consumer products giant Procter & Gamble Co. said Thursday it plans to cut more jobs and increase share repurchases as it works on its turnaround plan to focus on its most profitable categories and countries.
The news comes as the company holds its annual analyst meeting in Cincinnati, and as P&G faces increasing investor pressure to improve its results.
The maker of Tide detergent and Gillette razors P&G says on top of its already announced plan to cut 10 percent of its non-manufacturing jobs, or 5,700 jobs, by the end of its fiscal year in June 2013, it plans to continue to reduce its non-manufacturing jobs by 2 percent to 4 percent between 2014 and 2016. It will continue to hire in other areas, however.
P&G also said it now expects to buy back $4 billion to $6 billion of its shares. Previously it forecast $4 billion.
P&G has admitted to missteps in pricing and in balancing growth in emerging markets, which account for about 38 percent of its sales, amid an uncertain global economy and lackluster market share growth overall.
In May, P&G announced a plan to focus on its 40 top businesses, 20 biggest new products and 10 most profitable emerging markets, as it is undergoes a cost-cutting plan aimed at saving $10 billion by fiscal 2016.
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