U.S. markets closed
  • S&P Futures

    4,221.00
    +11.00 (+0.26%)
     
  • Dow Futures

    33,352.00
    +92.00 (+0.28%)
     
  • Nasdaq Futures

    13,445.00
    +53.00 (+0.40%)
     
  • Russell 2000 Futures

    1,975.10
    +5.60 (+0.28%)
     
  • Crude Oil

    91.85
    -0.08 (-0.09%)
     
  • Gold

    1,802.90
    -10.80 (-0.60%)
     
  • Silver

    20.50
    -0.25 (-1.19%)
     
  • EUR/USD

    1.0288
    -0.0014 (-0.13%)
     
  • 10-Yr Bond

    2.7860
    -0.0110 (-0.39%)
     
  • Vix

    19.74
    -2.03 (-9.32%)
     
  • GBP/USD

    1.2189
    -0.0029 (-0.24%)
     
  • USD/JPY

    133.2370
    +0.3640 (+0.27%)
     
  • BTC-USD

    24,306.70
    +1,459.15 (+6.39%)
     
  • CMC Crypto 200

    572.17
    +40.95 (+7.71%)
     
  • FTSE 100

    7,507.11
    +18.96 (+0.25%)
     
  • Nikkei 225

    27,819.33
    -180.63 (-0.65%)
     
  • Oops!
    Something went wrong.
    Please try again later.

Procter & Gamble won't be breaking up: CEO

·Anchor, Editor-at-Large
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Procter & Gamble (PG) brands such as Tide, Pampers and Gillette will have the same home for the foreseeable future.

“No. The company gets tremendous value on being one company,” P&G CEO David Taylor told Yahoo Finance when asked if recent organizational changes hinted at a potential breakup of the company. “P&G as a company can accomplish more than any one of the individual categories can.”

P&G said earlier in November it will split up into six business units from 10. Taylor, a more than 37-year veteran of P&G, believes the overhaul will help the sprawling consumer goods company to develop new products quicker. It’s also likely the changes will help cut costs at a time of tremendous pressure on consumer giants like P&G amid trade tensions and commodities inflation.

P&G hasn’t disclosed whether there will be layoffs related to the overhaul.

An argument could be made whether P&G has shaken things up enough to appease activist investors and new board member Trian Partners’ Nelson Peltz. In a bruising proxy contest last September, Peltz released a 93-page white paper arguing against P&G’s “insular” culture and slowness on acquiring upstart brands. Peltz also recommended P&G splitting up into three business segments.

A Trian Partners spokeswoman did not immediately respond to a request to comment on P&G’s changes.

For the time being, the wind seems to be behind the sails of Taylor and his executive team. P&G shares have surged 27% in the last three months spurred by signs of sales momentum in the latest quarter. Wall Street has also warmed up to the notion of a good bit of cost savings over the next 12 months from the organizational overhaul.

“We expect investors to broadly embrace P&G’s new organization structure, but they will likely remain skeptical until further evidence of improvement is seen,” Wells Fargo analyst Bonnie Herzog said.

Brian Sozzi is an editor-at-large at Yahoo Finance. Follow him on Twitter @BrianSozzi

Read more:

Coca-Cola CEO: Why we aren’t getting into the alcohol business

Hershey CEO: We are having a game-changing year

Panera Bread CEO: Here’s how you will order your food in the future

PepsiCo CFO: There are no plans to break up the company

Former Cisco CEO John Chambers on tech’s biggest problem

Burger King’s CEO shrugs off Wall Street’s worries

Roku Founder: The golden age of TV is just beginning

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.