Procter & Gamble May Lay Off 22,000

Procter & Gamble Co. is reportedly considering job cuts that could eliminate 10 percent to 20 percent of its global work force in response to the economic downturn.

The Wall Street Journal reported Wednesday the Cincinnati-based consumer products giant is examining the possibility of more cuts to compensate for past restructuring efforts that haven't gone far enough.

The newspaper, citing unidentified people familiar with the discussions, said P&G could cut as many as 22,000 jobs from its work force of about 110,000. Sources said the job cuts would be announced to employees Thursday morning.

If it does make those cuts, the maker of Crest toothpaste, Tide detergent and Pampers diapers would join such large corporations as DaimlerChrysler AG, Compaq Computer Corp., Lucent Technologies and Motorola Corp. which have announced massive job reductions in recent months.

P&G spokeswoman Linda Ulrey said Wednesday the company's policy is not to comment on rumors or speculation.

On Wednesday, Procter shares were down $2.70, or 4 percent, to close at $63.20 on the New York Stock Exchange.

Procter & Gamble has been struggling for more than two years and announced a plan in early 1999 to cut 15,000 jobs mostly through attrition and early retirement over five years.

Ulrey said that program is continuing, but the Journal said few staffers have left and the cuts under consideration would compensate for that and go deeper.

An internal company task force led by Steve Donovan, a senior executive, is examining P&G's operating costs, looking for structural changes as well as head-count reductions, the Journal said.

Ulrey said a task force was looking at all parts of the company for any additional cost reductions.