Greg Paull
Apr 28, 2015

What P&G's US$500 million cost-saving plan means

At the end of last week, John Moeller, P&G’s CFO, dropped a bombshell at the company's latest quarterly earnings meeting: The company is set to cut $500 million from “agency fees and production”.

Greg Paull

This incredible number sent shockwaves through the industry, and more than a few marketers were asked by their CFOs, “Where’s our $500 million”.

Now of course, PG invests $9 billion in marketing annuallymore than any other companybut achieving savings of this magnitude is still going to be a challenge, given the tight leashes the FMCG giant has already put its agencies and suppliers on over the past decade.
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