Proctor & Gamble’s (P&G) US$15 billion divestiture of its beauty brands to Coty will affect some 10,000 jobs worldwide, according to a report in Cicinnati.com. The deal, expected to close in late 2016, which will see 43 of the company’s beauty brands transferred to a separate company and then merged with Coty, will also handover ownership of eight factories and nine distribution centers globally.
The transfer of its beauty portfolio to Coty will see P&G near the end of its ongoing restructuring program, launched in 2012. The FMCG giant shed 2,700 jobs with the sale of Duracell to Berkshire Hathaway and 1,100 with the sale of its pet food business. Meanwhile, P&G executives have announced two separate efficiency drives, affecting 3,100 manufacturing and office workers in the first instance and another 3,000 to 6,000 office workers by mid 2017, in total cutting its head count from 118,000 in June 2014 to as little as 95,000 by mid 2017 – the lowest since 1991.
Worldwide, the company’s factory count will drop from 135 in June 2014 to 115 by mid 2016. The company’s campaign to refocus its competencies on 65 core labels across 10 categories has so far seen it shed up to 90 brands with combined sales of US$10.1 billion annually.
“This represents a significant step forward in the work to focus our portfolio on 10 categories and 65 brands that best leverage P&G’s core competencies,” said P&G CEO AG Lafley in a statement.