Procter & Gamble Co

plans to cut about 5,700 nonmanufacturing jobs as part of a new plan to reduce costs by $10 billion by the end of fiscal 2016, Chief Executive Officer Bob McDonald said on Thursday.

The world's largest household products company also trimmed earnings forecasts for the current quarter and fiscal year because of the new plan to sell its Pringles snack business to Kellogg Co .

The two companies announced their deal last week after P&G walked away from a plan to sell Pringles to Diamond Foods Inc , whose accounting practices came under fire after that agreement had been signed.

The job cuts will largely be completed by the end of fiscal 2013, which ends in June of that year, McDonald said at the annual Consumer Analyst Group of New York, or CAGNY, conference in Boca Raton, Florida.

P&G outlined a variety of projects it is putting in place, including using less expensive packaging, eliminating duplicate work where it can and working on innovations with outside companies and with virtual technology.

Shares of Cincinnati-based P&G were up 2.1 percent at $65.78 in afternoon trading on the New York Stock Exchange.

(Reporting by Jessica Wohl; Editing by Lisa Von Ahn)

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