Procter & Gamble Corporation has release a recent statement that the consumer goods provider company is planning on slashing 2,300 more jobs by June; around the time when the company ends its fiscal year. So far around 9,300 people have already been sent off based upon the company’s new restructuring regime.
Jon Moeller, the company’s Chief Financial Officer revealed the new plans regarding the employees’ cutback in news. “Through January of this year, we were at 18 percent,” he said. “By the end of this year we’ll be close to the top of that range.”
He said that the company hasn’t changed the stated goal of reducing employment by 16% – 22%. However, the only change was to achieve the goal of reducing nonmanufacturing employment a year earlier.
According to PG stock news, the company’s stock was down this previous week, showcasing a weak outlook for the fiscal year 2015, posting weaker results for FY15Q2.
The company expects its GAAP earnings to decline during mid of fiscal year 2015, more over analysts too are estimating a decline of 0.8% in GAAP earnings of company during the same period.
A significant fall has been observed in the staple goods and valuation. The investors have started doubting the investment in consumer goods giant s like Unilever Plc. and Kimberly Clark due to the PG stock quote, which has affected other companies.
PG stock is expected to have a 3% to 4% fall in the net sales of the fiscal year FY15. The fall is expected to arise due to the sales which take place globally; the instability of the foreign exchange and economic situations is expected to the reason behind the downfall of the stock. This has affected the overall revenue of Proctor and Gamble negatively downgrading the firm’s top-line growth by 5 PPT (percentage points).
The consumer good producer reported their adjusted earnings for second quarter as $1.06 earnings per share, lower than the estimated projections by the analyst by 6.5%. The company also posted its net sales amounting to be $20.2 billion for Q2, below the analysts’ estimated amount by 2.5%. The net sales of declined 4% for the company, posing a negative 5 PPT impact because of the altering foreign exchange rates.
Besides the foreign currency instability, the organic growth also show decline for in the company stats, growing only at a minimal rate of 2% for the quarter due to weak sales volume.