It also makes pet food and water filters and produces the soap operas Guiding Light and As the World Turns. Twelve of P&G's brands are billion-dollar sellers (Always/Whisper, Ariel, Bounty, Charmin, Crest, Downy/Lenor, Folgers, Iams, Pampers, Pantene, Pringles, and Tide). The company bought hair-care giant Clairol (Nice & Easy, Herbal Essences, Aussie) from Bristol-Myers Squibb in 2001. The company headquarters is located in Cincinnati Ohio with A.G. Lafley as their president and CEO.
Employee Morale.
As I am sure any major CEO or member of a upper management group will tell you, employee morale plays an important role in any company's success or failure. Procter and Gamble's employees are no different from the rest. Since the company's beginnings in 1837 and a staff of only ten employees, Procter and Gamble has grown to a staff of 106,000 employees. But, over the past four years P&G has encountered many problems regarding employee morale.
Labor Cuts.
A huge factor effecting employee morale and job performance is dependant on adequate staffing. In the fall of 1999 when e-commerce was on its last legs and an everyone was living in an uncertain economy, Procter and Gamble was still going strong showing a minor increase in net sales and diluted net earnings (*). But since the increases were minor, a proposed labor cut of 15,000 employees company wide was put into effect. In May 2001, Procter and Gamble CEO A.G. Lafley announced that an additional 9,600 labor cuts would be put into effect in an effort to reduce its operation costs and stay in competition with its main competitors. But the labor cuts have still not ended at this point. From now until the end of 2004, Procter and Gamble stands to cut another 16% of its worldwide workforce (40% in the united states and 60% in their foreign operations). Announcing the fresh cuts, CEO Lafley insisted that "The simple fact is that over the past year P&G's performance has been unacceptable".
