Procter & Gamble Co. (PG) severance payments cross $1 billion threshold

Consumer products giant shed 8,000 jobs in 2 years

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CINCINNATI - Procter & Gamble Co. has awarded more than $1 billion in severance packages since launching its global restructuring program in 2011, according to new figures in the company’s annual report.

The filing also shows P&G’s total employment declined to 121,000 by the end of June, down 5,000 from the same period last year and 8,000 less than 2011.

P&G has eliminated about 7,000 non-manufacturing positions since announcing a five-year program to reduce costs by $10 billion. But it’s also building new factories in more than a dozen countries, creating new jobs in the U.S. and abroad.

The company did not report how many locally-based employees received separation packages. The consumer goods giant employs roughly 12,000 employees locally and they represent about 10 percent of the company’s total employment. So, it’s likely the number of local retirees exceed 500. P&G said this week that local employment has remained at approximately 12,000.

P&G paid an average of $180,000 in severance to the 3,300 people who accepted early retirement in the 2013 fiscal year. That’s up from $143,000 for the average P&G retiree in 2012. Over two years, the average severance was $161,000.

WCPO Digital has been tracking the progress of P&G’s early retirees. Many have moved on to new jobs and consulting assignments or started new companies. For a searchable database of companies started by ex-P&Gers, go to:

http://www.wcpo.com/dpp/money/business_news/pg-pg-restructuring-spawned-dozens-of-new-companies-in-the-cincinnati-area

 

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