ISLAMABAD: P&G will wind down manufacturing and commercial activities in Pakistan as it transitions to a distributor model in the South Asian country, the American multinational firm said on Thursday.
The move, in line with P&G’s global efforts to accelerate growth and value creation, will see the company shift its business and operating model in Pakistan, according to a P&G statement.
The Ohio-based consumer goods corporation will cut down manufacturing of P&G Pakistan and Gillette Pakistan Ltd. and serve consumers from our “other operations in the region.”
“We will continue to operate the business in the ordinary course until the process is complete, which may take several months,” P&G said in a statement.
“Supporting this Company decision, P&G Pakistan and the supporting regional teams will begin transition planning immediately, with a focus first on P&G people.”
In June, P&G had announced that it would trim its portfolio and cut up to 7,000 jobs over the next two years as part of an overhaul. The firm also lowered its guidance to reflect the impact of trade tariffs and worsening consumption trends, according to Bloomberg.
The decision also makes P&G the latest multinational to scale back from Pakistan, amid wider business and economic challenges including profit-repatriation curbs and weak demand.
The firm entered the Pakistani market in 1991 and grew into one of the country’s top consumer goods providers.
It said that P&G employees, whose roles are impacted by this decision, will be considered for opportunities in other P&G operations outside Pakistan or will be offered separation packages in accordance with local laws, company policies, and our values and principles.
“After consideration of a broad range of options, the Company has decided a third-party distribution model is the most prudent way to continue to serve consumers in Pakistan at this time,” it added.
Separately, Gillette Pakistan said on Thursday it would evaluate a potential delisting following a decision by its parent Procter & Gamble to discontinue its business in Pakistan as part of the consumer product group’s global restructuring program, Reuters reported.
Gillette Pakistan plans to convene a board meeting shortly to evaluate the actions required for this business discontinuation, including the potential de-listing from the Pakistan Stock Exchange, the company said in a filing.
