The Procter & Gamble Company (NYSE:PG) today announced it is reorganizing its business into four major business divisions. The consumer products giant has promoted four of its executives to head each of those divisions. The changes will come into effect on July 1. It’s the first major change at The Procter & Gamble Company (NYSE:PG) since Alan G. Lafley returned to the company as CEO a couple of weeks ago.
AG Lafley previously served as the CEO of Procter & Gamble Company (NYSE:PG) from 2000 to 2009 before handpicking Robert A. McDonald has his successor. The company’s performance slumped since McDonald came to the helm, however. Billionaire investor Bill Ackman has long been pushing for the replacement of McDonald. Lafley finally replaced McDonald on May 23.
A The Procter & Gamble Company (NYSE:PG) spokesman said that the changes are aimed at boosting growth in emerging markets, strengthening business in developed markets and improving profits and revenues. The move to overhaul the company into four major divisions was already in progress when Mr. Lafley came back to the company. He reviewed them and supported the reorganization plan.
The Four Divisions of Procter & Gamble
The first division—Global Baby, Feminine and Family Care—will he headed by Martin Riant. It will have brands like Pampers and Tampax. The next division will be Global Beauty, where Deborah Henretta will be the group president. It will manage brands like Cover Girl and Olay.
David S. Taylor will be the group president of the Global Health and Grooming unit. It has popular brands like Braun, Oral B, Gillette and Scope. Mr. Taylor will also look after the pet care business, succeeding Jorge S. Mesquita. The fourth unit of Global Fabric and Home Care will have brands like Tide and Swiffer. Giovanni Ciserani will lead this group.
Lafley Prepares a Lineup for his Replacement
Alan G. Lafley came back to The Procter & Gamble Company (NYSE:PG) to revive its fortunes. He is unlikely to stay with the consumer product company for more than 2-3 years. Along with reviving The Procter & Gamble Company (NYSE:PG)’s business, his other top priority is to prepare a lineup of senior executives who can replace him, people familiar with the matter told the Wall Street Journal.
RBC analyst Jason Gere said in a research report that all the four group presidents will be reporting directly to company CEO Alan G. Lafley. Gere said that the new structure will allow for faster brand expansion and product innovation. He also warned that the company’s quarterly results may be stupendous as the company looks to effect change.
The Procter & Gamble Company (NYSE:PG) shares were down 0.43% to $76.33