Procter & Gamble Co. To Cut About 10% Of Non-Manufacturing Jobs; Lowers Q3 And FY 2012 EPS Guidance, Due To Pringles Sale-Reuters

Reuters reported that Procter & Gamble Co. plans to cut a total of 5,700 nonmanufacturing jobs as part of a new plan to reduce costs by $10 billion by the end of fiscal 2016, Chief Executive Officer Bob McDonald said on Thursday. The Company has about 57,000 non-manufacturing employees among its total workforce of about 129,000. The Company had already said it would cut 1,600 positions in the current fiscal year. On Thursday, it said it would cut another 4,100 jobs during fiscal 2013, which begins in July. The Company expects to save a total of $800 million from the job cuts, executives said at the annual Consumer Analyst Group of New York, or CAGNY, conference in Boca Raton, Florida. The Company also trimmed its profit forecast due to the pending sale of its Pringles snacks business. In total, the Company aims to trim $10 billion of costs, including $1 billion in marketing costs and $3 billion in overhead costs. The Company lowered its earnings per share expectations by 2 cents for the current third quarter of 2012 and by 7 cents for the fiscal year 2012, due to the pending sale of Pringles. It now expects to earn $0.89 to $0.95 per share in the third quarter of 2012, which ends in March, and $3.93 to $4.03 per share in the fiscal year 2012 ending in June.