Procter and Gamble’s CFO has pointed to productivity as a great enabler during discussions on the company’s plans to shave $10 billion off its costs by 2016.
According to a report on the Cincinnati-based Business Courier, Proctor and Gamble has cut 5,850 jobs in its quest to reduce management and administrative expenses by 2 per cent to 4 per cent a year. The company announced its intentions to lose $10bn off its costs during a conference last year.
At the recent Consumer Analyst Group of New York conference CFO, Jon Moeller, said the company was several months ahead on plans to achieve this ambition. He claimed productivity was the key, which created financial flexibility to pursue more growth. The company’s brands include Gillette razors, Head & Shoulders hair products and Olay beauty.
Moeller also announced Procter and Gamble is adding 200 million consumers per year in developing markets as it expands its distribution model and promotes higher-tier products. The company reported $15bn in sales in Asia in fiscal 2012, up from $4bn in 2001.