Proctor & Gamble to Reorganize Business to Spur Growth

Michael Teague |

PGProctor & Gamble (PG), the world’s leading manufacturer of consumer goods, announced late on Wednesday that it would be restructuring its global business units into four different industry-specific sectors.

Previously, the company had much success with its global business being divided into two units: beauty and grocery, and household care. According to P&G, this arrangement, since it was implemented over a decade ago, led to some $900 million in savings.

Since 2009, however, the company’s sales growth has been lagging. Over 2013, the company has been matched or overtaken by competitors such as Unilever (UN), Johnson & Johnson (JNJ) and Colgate-Palmolive (CL). Just last year, CEO Bob McDonald implemented a $10 billion cost-reduction plan based primarily on a $6 billion decrease in the cost of goods sold, 7,500 layoffs, and savings on overhead and marketing.

Just two weeks ago, McDonald was replaced with his predecessor AG Lafley, who, plans to continue efforts to cut expenses, and the new ordering of the company’s global business units can be seen as a supplement to that turnaround plan.

The new arrangement will see a global baby, feminine and family care sector; a global beauty sector; global health and grooming; and global fabric and home care. In a statement, Lafley said that the new organization and leadership structure would allow the company to operate more effectively, and would help lead to better growth numbers.

The four units will be directed by executives that are already part of the company, all of whom will report to Lafley. In addition, Dimitri Panayotopoulos, the vice chairman of global business, will step up to vice chairman of the board, as well as adviser to Lafley.

P&G has lost market share to competitors in categories such as detergents and beauty products, as well as in the increasingly prized emerging markets.

The news was received with little commotion on the market on Thursday. The $208.5 billion market cap company was down 0.75 percent to $76.08, and has dropped 2.8 percent over the past week.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
CL Colgate-Palmolive Company 70.92 0.00 0.00 3,633,052
JNJ Johnson & Johnson 113.44 -1.43 -1.24 8,422,032
NCT.P.C Newcastle Investment Corporation Preferred Series 24.86 0.00 0.00 0
PG Procter & Gamble Company (The) 84.33 -0.60 -0.71 13,974,145
UN Unilever NV 42.66 -0.25 -0.58 1,786,528


Emerging Growth

Nano One Materials Corp.

Nano One Materials Corp is a technology company. The Company manufactures storage materials for lithium ion batteries.

Private Markets


The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…


D-Wave Systems is the first quantum computing company. Its mission is to integrate new discoveries in physics, engineering, manufacturing, and computer science into breakthrough approaches to computation to help solve…