P&G to Cut 1,600 Jobs, Bank on Digital for Long-term Savings | Digital - Advertising Age: "Facing flat market shares and growing investor pressure to cut costs, Procter & Gamble Co.plans to eliminate about 1,600 "overhead" or nonmanufacturing jobs, including some in marketing, and is banking on digital marketing to help contain media spending long-term, executives said on the company's earnings conference call today.
The move follows an announcement earlier this month that P&G would outsource to brokerage firms in-store merchandising work covering about 2,700 employees, most of the part-time, and expands a program put in place for some categories two years ago.
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"In the digital space, with things like Facebook and Google and others, we find that return on investment of the advertising when properly designed, when the big idea is there, can be much more efficient," Mr. McDonald said. He cited the 1.8 billion in free impressions generated by the Old Spice campaign in recent years, adding "there are many other examples I can cite from all over the world."
P&G still expects to spend between 9% and 11% of sales on advertising in the long term and is stepping up spending this quarter and next behind its global Olympics sponsorship-related efforts, which he said the company expects to add $500 million in incremental revenues.
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