Procter & Gamble, the maker of consumer brands such as Tide, Pampers and Crest, on Thursday unveiled a simplified corporate structure as it looks to streamline its business and address concerns about disorganization at the consumer products giant.
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P&G shares rose on Friday.
|PG||PROCTER & GAMBLE COMPANY||116.63||-0.90||-0.77%|
The Cincinnati-based company will reorganize its business into six units, dubbed “sector business units” comprised of beauty, baby & feminine care, fabric & home care, family care, grooming and health care. Each of those will be led by a “CEO” who will report to Procter & Gamble CEO David Taylor.
The new units will be responsible for 80 percent of Procter & Gamble’s overall sales, and each unit CEO will oversee every facet of their segments, from product innovation to supply chain. The changes will be effective July 1.
In addition, Jon Moeller, the company’s chief financial officer, will take on an expanded role, serving as vice president and chief operating officer. He will report to Taylor.
“This is the most significant organization change we’ve made in the last 20 years,” said Taylor. “We will have a more engaged, agile and accountable organization focused on winning with consumers through superiority, fueled by productivity, and operating at the speed of the market.”
The company did not announce any layoffs alongside the restructuring.
The changes come after a lengthy proxy battle with activist investor Nelson Peltz, who advocated for a simplified structure, sharper focus on business segments and a reduced headcount at the company. Peltz joined the company’s board of directors last March. His Trian Fund Management was also behind the shake-up at General Electric.
Procter & Gamble shares are little changed this year.