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P & G's plans to cut staff, new product initiatives: how will this affect innovation and design?

With Procter &Gamble's announcement that the company will cut 10% to 20% of

With Procter &Gamble’s announcement that the company will cut 10% to 20% of “initiative development,” i.e., new product development and related marketing programs both globally and regionally, it seems as if innovation might surely be affected.

Is it a smart move to not pursue forward-thinking design during rough times?