In its formal announcement, P&G stated the shut-down transition would take place over several months. Meanwhile, it will conduct business "in the ordinary course." Affected employees will either be assigned roles in other P&G operations overseas or receive separation packages consistent with local labor laws and company policy.

P&G s Pakistani operations have well-known brands like Pampers, Ariel, Head & Shoulders, Pantene, Safeguard, Olay and Vicks.

The action is part of P&G s companywide "organization renewal" plan, under which it also has already pledged to eliminate 7,000 jobs worldwide.

One of the major victims of this move is Gillette Pakistan, a listed subsidiary of the company. Gillette has said that its board will meet to consider measures for business discontinuation, including the potential voluntary delisting from the Pakistan Stock Exchange (PSX).

Gillette s board has already endorsed preparatory measures to orderly wind up business and delist, including the repurchase of the outstanding shares.

The majority shareholder Series Acquisition B.V. plans to acquire the minority holding and delist Gillette in accordance with the regulatory requirements.

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Business community and analysts have reacted with alarm. The move has been viewed as a red flag for the investment environment of Pakistan, contributing to overall concerns regarding policy uncertainty, currency risks, and regulatory challenges for multinational firms.

Temporarily, P&G states that its topmost concern will be ensuring that the transition is effectuated neatly and with less disruption, particularly for staff and consumers.