Can P&G Cut $10 Billion in Costs?

• Reducing overhead costs (which are costs not related to the sale of goods) by $3 billion; and
• Reducing marketing expenses by $1 billion.

To get there, management says it will:
• Improve process reliability;
• Reduce capital cost per unit of volume; and
• Simplify and standardize the manufacturing platform.

More specifically, management maintains that it can save $3 billion in overhead costs by:
• Eliminating duplication of work;
• Simplifying through digitization;
• Optimizing the number of business units and functions; and
• Optimizing the global footprint.

But analysts warn that P&G’s 5% annual growth rate may be a bit optimistic and that the world’s biggest advertiser may have difficulties slashing its budget by $1 billion.