UPDATE 1-P&G restructures operations, creates six business units
(Adds details on new divisions, shares)
Nov 8 (Reuters) – Procter & Gamble Co on Thursday announced the creation of six business units for its largest geographic markets, its biggest organizational change in the last 20 years that will be effective from July next year.
The maker of Tide detergent and Oral-B toothpaste said the new divisions – fabric and home care, baby and feminine care, family care and new ventures, grooming, health care, and beauty care – will have their own chief executive officers who will report to CEO David Taylor.
P&G’s move comes after billionaire investor Nelson Peltz was appointed to the company’s board in March. Peltz has been pushing for a simpler organizational structure with three business units.
“We are accelerating the pace of change and stepping up execution to meet the challenges of today’s dynamic world,” Taylor said in a statement.
P&G also said Chief Financial Officer Jon Moeller will expand his role to assume the duties of chief operating officer, a role that has been left vacant since 2009, following the appointment of then-COO Bob McDonald to the top job. McDonald left the company in 2013 and was succeeded by A.G. Lafley.
Shares of the company were up marginally at $91.65 in extended trading. (Reporting by Soundarya J in Bengaluru and Richa Naidu in Cincinnati; Editing by Shounak Dasgupta and Anil D’Silva)
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