FMCG Firms Cut Senior Roles By 25% Amid AI Disruption, Tepid Growth

India’s fast-moving consumer goods sector is undergoing a major talent reset, with companies cutting headcount and trimming senior leadership roles by 25% in fiscal 2025. Faced with rising cost pressures, cut-throat competition, slowing growth, and the increasing influence of artificial intelligence and automation, top players like Hindustan Unilever Ltd., Dabur India Ltd., and Godrej Consumer Products Ltd. have scaled back hiring and restructured teams, with the brunt falling on top management.

An NDTV Profit analysis of annual reports revealed that HUL saw its permanent employee count decline to 6,604 in the year ended March 2025 — an 8.5% drop from the previous year’s 7,215. During this period, the Surf Excel maker's attrition rate rose to 19% from 17.4%. Dabur reduced its hiring by 6.12%, onboarding 1,670 employees in FY25 compared to 1,779 the year prior. GCPL's total employee headcount shrank 13.2% to 7,517.

Nestle India’s staff count fell 3.6% to 8,419 in FY25, while Emami’s permanent workforce shrank 2.2%, ending the year with 3,217 employees.

Globally, Procter & Gamble announced on June 6 that it plans to cut 7,000 jobs—roughly 6% of its workforce—over the next two years in a bid to rein in costs amid fluctuating consumer demand and tariff uncertainties. The seller of Pampers, however, didn't disclose specific regional impacts.

Experts attribute this workforce contraction to a confluence of factors. 

"While the industry overall saw a 10% decline in hiring, a few mid-sized companies experienced up to a 14% dip," said Karthikeyan Kesavan, director and head of business — permanent recruitment, Adecco India.

"Most of the organisations are experiencing a double-digit attrition indicating voluntary exits and restructuring. Basis our data, we see a trend of over 25% drop in hiring for senior level roles," he told NDTV Profit.

Senior leadership roles such as brand managers, category heads as well as supply chain leaders have especially become redundant, Kesavan added.

This moderation in hiring is driven by a mix of economic downturn, slower-than-expected urban demand recovery and a sharper focus on productivity, according to Yeshab Giri, chief commercial officer, professional talent solutions, Randstad India. AI and automation are also prompting a workforce reset, he added. "We are seeing a more selective approach to hiring, where organisations are consolidating leadership layers and prioritising specialised skills over generalist roles."

Balasubramanian A, senior vice-president at TeamLease Staffing, explains that many companies are correcting over-hiring during the 2021–22 growth surge. "Margin pressure has forced them to cut layers, and senior roles are usually the first to go. The focus now is on profitable volume growth, not just expansion, resulting in flatter and more execution-led firms."

While senior roles are shrinking, there has been a 5-8% growth in hiring demand for entry-level jobs over the last six months, Giri added. Nearly a quarter of these roles are concentrated in e-commerce management, social commerce, data analytics, and digital marketing.

For niche roles like sustainability experts, consumer insights specialists, and tech-driven supply chain managers, FMCG firms are tapping into external talent to foster innovation and future readiness, he said.

Sales and marketing professionals, particularly in digital and rural segments, are also in high demand.

Recently, legacy consumer companies also faced unprecedented C-suite churn. Priya Nair took over as HUL CEO and MD on August 1, replacing Rohit Jawa who stepped down after just two years of his five-year term.

Shortly after that, Coca-Cola bottler Hindustan Coca-Cola Beverages named Hemant Rupani as its first external CEO, signaling a desire for fresh perspectives. L’Oréal India too announced Jacques Lebel as its new country manager, effective Oct 1, and Nestle India welcomed Manish Tiwary as MD after long-time head Suresh Narayanan retired on July 31.

Experts believe these leadership rejigs mirror the dire need to shed the outdated strategies of some of these consumer goods firms. While traditional giants still hold major market share, regional and digital-only brands are steadily eroding their dominance across categories like noodles, tea, cosmetics, soft drinks and biscuits.

Looking ahead, the hiring outlook remains cautious. 

Balasubramanian said that mid and senior lateral hiring remains uncertain for now, with potential upticks if rural demand or festive sales pickup later in the year. "Overall, however, companies are moving towards leaner structures and sharper, skill-based hiring."

Kesavan echoes this sentiment, noting that automation—particularly in supply chain, marketing, and analytics—is reshaping roles.

AI and predictive consumer tools are streamlining operations, prompting role consolidation and redefining traditional functions, he says.