(Bloomberg) -- Procter & Gamble Co. said Thursday it will simplify its corporate structure, a move likely to please activist investor and board member Nelson Peltz, who spent much of last year agitating for a reorganization to goose innovation and recapture sales.
Key Insights
- The plan, announced at an investor day in Cincinnati, includes cost savings, better packaging and consumer communication, and a restructuring into six industry-based business units from 10. P&G is already in the middle of a five-year, $10 billion cost-cutting program.
- P&G has made some progress in becoming nimbler, posting quarterly results last month that showed strong growth. But it wants to go further. The company is accelerating its streamlining “to be agile and focused but still have sufficient scale,” CEO David Taylor said in an interview.
- The company's long-time chief financial officer, Jon Moeller, will take on added responsibility under the new structure. The finance chief will also become chief operating officer.
Market Reaction
- Shares were little changed on Thursday. Year to date, the stock is down less than 1 percent, compared to a 5 percent gain in the S&P 500 Index.
- Read the company's statement here.
To contact the reporter on this story: Lauren Coleman-Lochner in New York at llochner@bloomberg.net
To contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Jonathan Roeder
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