P&G cuts $1bn from marketing costs

P&G is set to cut $1bn (£0.63bn) from its marketing costs by switching to more efficient and lower cost digital activity, as part of a wider $10bn (£6.3bn) cost cutting drive over the next five years.

PG

The cost cutting will include the loss of 5,700 jobs – including marketing roles – from its global workforce in the next 12 months.

CEO Bob McDonald says that the cost cutting does not represent a reduction in support of its brands, but an increase in the efficiency of channels and activity.

P&G has previously outlined plans to shift investment into lower cost digital channels and plans to focus a significant proportion of its Olympic sponsorship activity on digital channels in the run up to the Games.

P&G also intends to continue its multi-brand activity to drive efficiencies after introducing its first multi-brand commercial initiative last year, including its first TV advertising that grouped together a number of its product brands under the P&G corporate brand.

CEO Bob McDonald outlined the efficiency plans, which also impact materials and manufacturing costs, at an analyst conference in New York.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here