P&G's Shailesh Jejurikar stares at supply chain challenges and tariff barriers, as Street hopes for sales growth to sustain

P&G's next CEO Jejurikar shall also have to oversee the implement of a recently-announced layoff at the company.

Shailesh Jejurikar, a seasoned hand and previously the Chief Operating Officer at Procter & Gamble, has been promoted to be the next CEO starting January, at a time when the maker of Tide detergent and Gillette razors is navigating challenges to supply chain and rising tariff-related barriers across the world.

Tariff pressures have emerged at a time when is P&G undertaking a new two-year restructuring program to trim non-manufacturing roles, after reporting six consecutive years of +4% organic sales growth. The company's profit margins had come under drastic pressure in 2024, sliding down 17.7% as compared to more than 18% in 2022.

Productivity Gains

Jejurikar shall also have to oversee the implement of a recently-announced layoff at the company. In pursuit of productivity gains, P&G had in June 2025 announced plans to cut as many as 7,000 office jobs over next two years, amounting to around 15 percent of its non-manufacturing employees. The management said in April 2025 that it is leveraging innovation and productivity to 'manage market volatility and tariff increases' effectively.

The consumer company said in April it sees 'market potential' in growing household penetration of its brands among underserved consumers acoss North America and Europe. "We have opportunities to drive efficiency up and down our P&L and across our balance sheet from cost of goods sold to marketing to partnering with retailers to drive in store and online productivity," CFO Andre Shulton had said in June.

Tariff Hit

Higher global tariffs are bound to increase manufacturing and sourcing cost for global consumer companies, which is leading to a cost increase. Jejurikar shall have to balance these pressures at a time when the global consumption demand has been soft. In April, P&G had cited tariff rates to trigger a headwind of $3-4 per share during the fourth quarter.

The management has already red-flagged tariff-related headwinds to impact financial results in the near term, with a $600 million pre-tax impact projected for fiscal 2026. During the March quarter results, P&G's then CEO Jon Moeller had said, "We’re making appropriate adjustments to our near-term outlook to reflect underlying market conditions while remaining confident in the longer-term growth prospects..."

Cost Pressure

During an earnings call in April, P&G had cut its annual sales and profit guidance owing to these factors, and projected an increase in incremental costs. CEO Moeller had said at that time that the company will likely effect price hikes from July, and had cited tariffs as 'inherently inflationary'. According to a Bloomberg report, US consumer companies had raised prices by nearly 6 percent every year between 2022 and 2024.

Jejurikar had joined P&G in July 1989 as Assistant Brand Manager, Personal Health Care, India after he completed his MBA from Indian Institute of Management, Lucknow.