P&G suspends operations in Ukraine, scales back in Russia

ajc.com

CINCINNATI — Procter & Gamble Co. has suspended operations in Ukraine and is scaling back its business in Russia, CEO Jon Moeller said in a letter to employees Monday.

“We have discontinued all new capital investments in Russia and are suspending all media, advertising, and promotional activity,” Moeller wrote. “We are significantly reducing our product portfolio to focus on basic health, hygiene and personal care items needed by the many Russian families who depend on them in their daily lives. As we proceed with the reduced scale of our Russian operations, we will continue to adjust as necessary.”

P&G joins a growing list of global companies that have downsized or exited Russia, including Netflix, Nike, Visa, Mastercard, Ford, Toyota and General Motors.

As WCPO previously reported, P&G has about 500 employees in three locations in Ukraine, including two factories that supply more than 30 countries. Moeller said P&G “proactively suspended operations there to provide “evacuation assistance” and “food, shelter and essential products for P&G families.”

In Russia, P&G has about 2,500 direct employees. Morningstar analyst Erin Lash told WCPO last week that Russia and Ukraine together account for $1 billion to $1.5 billion in annual sales, less than 2% of its $76.1 billion total in the 2021 fiscal year.

Moeller did not indicate how long its Russian subsidiaries will operate at “reduced scale,” but indicated future adjustments were possible. Large investors are telling companies they should consider suspending operations in response to Russia’s invasion of Ukraine.

“Within Ukraine, we are working with our distributors and aid organizations where they can operate safely to replenish supply and deliver essential products people need,” Moeller wrote. “Across Europe, our manufacturing and distribution teams are working around the clock to address the extraordinary logistical challenges to continue to serve consumers.”

About the Author