Procter & Gamble Reorganizes Business Units
NEW YORK (AP) -- Procter & Gamble has reorganized its business into four new divisions, the first big change at the world's largest consumer products maker since A.G. Lafley returned as CEO nearly two weeks ago.
Each of the four divisions will be headed by a group president, expanding the responsibilities for four current executives. The move is key as one of Lafley's tasks is to create a succession plan. Lafley, who previously served as CEO from 2000 to 2009, replaced CEO Bob McDonald on May 23. The changes come as Procter & Gamble seeks to spur growth in emerging markets and improve profit and revenue globally.
The moves were already in the works when Lafley came aboard, but he reviewed them and fully supports the changes, said P&G spokesman Paul Fox.
"This sector organization and leadership team will help us operate more effectively and efficiently to continue momentum behind P&G's growth strategies," Lafley said in a statement
The four divisions include: global baby, feminine and family care, which includes brands such as Pampers and Tampax. Martin Riant, 54, will be group president of the division. He is currently group president of global baby care.
Global beauty, which includes brands like Olay and Cover Girl, will be headed by Deborah Henretta, 52, who currently in the similar role of group president of global beauty care.
Global health and grooming will be led by David Taylor, 55, who is currently group president of global home care. That unit includes brands like Gillette, Braun, Oral B, Scope and others. Taylor will also take over pet care, succeeding Jorge S. Mesquita, who is leaving the Cincinnati company.
Global fabric and home care, which includes brands like Tide detergent and Swiffer sweepers, will be led by Giovanni Ciserani, 51, who was previously group president of global fabric care.
The changes are effective July 1.
Currently, the company's business units are divided into five segments: beauty; grooming; health care; fabric and home care; and baby and family care.
Bernstein analyst Ali Dibadj said the new structure only goes part of the way in terms of solving accountability issues. He added there was too little focus on regions.
Since the changes were in the process of being made when Lafley came aboard, "I'm surprised he didn't hold off until more time had past," Dibadj said.
P&G shares ended the day down 71 cents at $76.66, closer to the high end of its 52-week range of $59.07 to $82.54.