P&G to cut 1,600 jobs to save costs

Consumer goods major Procter & Gamble is planning to eliminate about 1,600 of its non-manufacturing jobs, including those in marketing, as part of cost-cutting.

Pressed by a flat market for its products, Procter & Gamble Co is also increasingly looking at digital marketing to help contain long-term media spending.

Procter & Gamble annually spends an average $10 billion on marketing alone.

P&G executives announced the plan at the company's earnings conference.

The company had also, last month, announced plans to outsource in-store merchandising work that would eliminate 2,700 (about 3 per cent) of its 50,000 workforce worldwide.

P&G is adopting a policy of selective hiring and restructuring along with attrition to stay trim in order to get out of a high-cost structure.