P&G CEO Pushes AI-Led Innovation After 7,000 Job Cuts as Inflation Squeezes Brand Loyalty
Updated
Updated · The New York Times · Oct 4
P&G CEO Pushes AI-Led Innovation After 7,000 Job Cuts as Inflation Squeezes Brand Loyalty
1 articles · Updated · The New York Times · Oct 4
Summary
Shailesh Jejurikar, who became P&G chief executive in January, said the company must make products consumers feel are worth higher prices as inflation and economic anxiety weaken demand for premium household brands.
Store-brand competition has intensified as lower-income households trade down, slowing P&G’s sales growth after years of price increases across products such as Tide, Pampers and Gillette.
Tariffs and conflict-driven energy costs have also raised expenses across P&G’s global supply chain, prompting the company to lift prices and announce 7,000 job cuts—about 6% of its workforce—over two years.
Jejurikar said P&G is leaning on AI to speed discovery of new molecules and formulas and is reworking its marketing for a fragmented TikTok-era media landscape.
The strategy reflects a broader test for consumer-goods giants: whether brand power and faster innovation can preserve pricing power as shoppers become more cost-conscious.