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.
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.
