Procter & Gamble will lay off up to 7,000 jobs over the next two years, accounting for 6% of its global workforce, become a manufacturer of tidal detergents and assistant diapers, and wrestle with tariff-related costs and economically anxious customers.

Chief Financial Officer Andre Schulten said the work has accounted for about 15% of its current non-manufacturing workforce announced at the Deutsche Bank consumer conference in Paris.

"This restructuring plan is an important step in ensuring we provide long-term algorithm capabilities over the next two to three years," Schulten said. "However, this does not eliminate the near-term challenges we are currently facing."

Cincinnati-based Procter & Gamble has approximately 108,000 employees worldwide in June 2024.

Cuts are part of a broader restructuring plan. Procter & Gamble will also end sales of some of its products in certain markets. Procter & Gamble said it will provide more details in July.

Like many companies, Procter & Gamble is dealing with U.S. consumers who are concerned about their spending when they focus on inflation.

U.S. consumer sentiment has declined slightly for the fifth straight month, surprising economist. The initial reading of the consumer sentiment index, which the University of Michigan closely watched, fell 2.7% per month to 50.8, the second highest level in the survey's history in nearly 75 years. The only lower reading is in June 2022. Sentiment has dropped to nearly 30% since January.

The Congressional Budget Office released an analysis Wednesday saying Donald Trump's comprehensive tariff plan will cut the deficit by $2.8 over a decade while shrinking the economy, increasing inflation and reducing overall household purchasing power.

The forecast to enter the CBO analysis is that households will eventually buy from countries with less purchases from countries subject to additional tariffs. The Budget Office estimates that tariffs will increase the annual average inflation rate by 0.4 percentage points in 2025 and 2026.

In April, Procter & Gamble pointed out on a conference call that the biggest U.S. tariff impact comes from original and packaging materials and some finished products from China. The company said it will consider increasing options and productivity to mitigate the impact of tariffs, but it may also have to increase the price of certain products.

In the same month, the Consumer Brand Association, which represents large food companies such as Coca-Cola and General Mills, and consumer product manufacturers such as Procter & Gamble, warned that while its business manufactures most of its goods in the United States, they are now facing tariffs of concern - like toilet paper or cinnamon wood pulp, toilet paper or cinnamon must be imported because that must be imported.