Procter & Gamble (PG) recently announced their plans to cut 7,000 jobs over the next two years, and it’s got investors talking. CNBC’s Jim Cramer weighed in on the news, offering his insights on what this means for the company and its shareholders.
According to Cramer, this move by Procter & Gamble is a strategic one to streamline their operations and focus on their core brands. This decision may lead to short-term pain for some employees, but in the long run, it could lead to a stronger and more profitable company. From an investor’s perspective, this could be a positive sign as it shows the company’s commitment to improving their bottom line.
However, Cramer also pointed out that this announcement comes at a time when Procter & Gamble’s stock is already trading at a high valuation. This could potentially make it a riskier investment for retail investors. He suggests keeping an eye on the stock and waiting for a potential dip before considering adding it to your portfolio.
In conclusion, while Procter & Gamble’s job cuts may create some uncertainty and volatility in the short term, it could ultimately benefit the company’s financial health and profitability. For investors, it’s a reminder to always consider the current valuation of a stock before making any investment decisions. Keep an eye on PG and consider adding it to your portfolio at a more reasonable price.