CINCINNATI: Procter & Gamble's corporate PR budget is being slashed
by 10% to 15% as a result of its recently announced corporate
'Corporate functions will see the greatest cutbacks,' said Linda Ulrey,
a senior manager in P&G corporate communications. PR comes under that
'We will look to smaller centers of in-house expertise and look to
increase outsourcing,' she said. That could mean more work for PR
agencies as P&G scales back in-house staff. But the search for cost
savings could also mean a re-examination of how many outside agencies
are used - a move other companies, such as Sears Roebuck, have
undertaken in recent years.
P&G announced March 22 that it planned to cut 9,600 jobs worldwide and
trim between dollars 600 million and dollars 700 million in expenses
annually by fiscal 2003/2004. The cuts come on top of plans announced in
1999 to cut 7,800 employees.
P&G currently has no PR agency of record and instead works with scores
of agencies on a project basis, such as Fleishman-Hillard,
Cincinnati-based Northlich Communications and Porter Novelli.
P&G spent dollars 12.5 billion in 2000 on marketing, research and
administration, a broad budget category that is thought to include PR.