While there will be those individuals who see the latest announcement of job cuts as a sign of weakness, the further cuts represent a smart move by P&G to continue to solidify a business growth progression in what is turning out to be uncertain economic times. The Company must continue to build up reserves to manage a number of things going forward [including] further price corrections to regain market share, promotions behind new initiatives and continued penetration in emerging markets where it has established entry points. Net, the new personnel cuts represent an intelligent further step.
While announcing a larger number of share repurchases this fiscal year (~50% increase), the additional cost savings will be put to good use as referenced above. Moreover, I suspect they will be looking to divest some other slow growing businesses as the Company reshapes itself into a reliable growth entity. The Company pays a solid dividend, which it says will increase again in May to maintain shareholder value as it increases it's foothold in it's various markets.
Agree. Job cuts are always painful and one wishes that better planning on hiring would lessen the need. But, once the need is there, much better to take the action than not. P&G has never been very lean and when product differentiation narrows as it has, the consumer simply won't pay for it anymore.