American consumer goods giant Procter & Gamble is planning to layoff as many as 7000 jobs in the non-manufacturing sector in the next two fiscal year. The major job cut is going to impact around 15 percent of its white-collar workforce. The move is a reflection of sweeping transformation towards AI-enhanced workflows and digital integration Layoffs To Affect R&D And Marketing Spare Factories As per several media reports the company stated that the job cuts will affect the corporate departments such as R&D marketing finance distribution planning and other non-manufacturing functions. The layoff will affect about 6 percent of the company’s workforce across the world and about 15 percent of white collar staff. The implementation will be gradual spanning fiscal years 2025 and 2026 allowing for smooth transitions and internal staff reassignments. Manufacturing Jobs Are Safe Procter & Gambles recent layoffs will not impact its factory or manufacturing workforce. The company is focusing on improving efficiency in administrative and support roles by leveraging technology ensuring continued production. Why is P&G cutting jobs? Streamlining through automation As per the company one of the major reasons is automating of repetitive work processes and reducing redundancies. Systems such as RPA and AI-powered can do procurements and payroll analysis and other tasks. Hence back office teams are not required. Digital Tools P&G is also planning to restructure jobs. Employees of the company will handle broader daily responsibilities by using a data and decision-support tools. Digital Transformation The company has been investing in digital tools and machine learning algorithms and the mass layoff is also part of a broader operational shift. Inflation And Tariffs Driving Change P&G expects to face an additional USD 600 million in pre-tax costs this year due to rising inflation and higher tariffs on materials from Asia. Economic Uncertainty and global slowdowns P&G is restructuring its operations in order to counter economic uncertainty and a slower global recovery. The restructuring involves a phased job cuts in the next two years. This aims to focus for increased agility and digital focus. These job cuts will affect traditional non-digital departments. P&Gs goal is to create a more efficient and digitally-driven organisation. The company’s restructuring is likely to be completed in the coming two years.