In a presentation given to investors last week, P&G revealed it was to undertake concrete measures to increase the productivity of its $76.5bn business by cutting the number of expatriate managers by 40-50% and reducing staffing at the general manager level by 15%. It also confirmed it was committed to a flat or declining head count.
P&G will continue to invest in its faster growing businesses, namely the 41 brands with sales of more than $500m such as Swiffer and Tide, while slower-growing businesses will be expected to commit to zero overhead growth.
The company intends to divide its remaining 250 brands into three categories, namely 'future stars' which have the potential for growth, 'local jewels' which particularly strong in specific countries and 'underperformers' which will be divested or discontinued.
The maker of household names such as Gillette, Tide, Olay and Pantene, also said it was committed to marketing its products heavily having spent $10bn on consumer marketing and a further $10bn with retailers to drive sales forward.
P&G is aiming to accelerate annual growth to 7- 8% during the next 5 years while completing the integration of Gillette which it bought for $57bn in 2005.
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