P&G Cuts Management and Underperforming Brands

Posted: March 19, 2008

At the Consumer Analysts Group of New York meeting in February, A.G. Lafley, chairman CEO of Procter & Gamble Co., outlined a plan to cut nearly 15% of the company's general manager positions and a number of underperforming brands.

According to the company, the move is aiming to boost productivity amidst tough competition. As part of the plan, most of P&G's brands will be limited to zero overhead growth, with the exception of high priority businesses, which will be limited to half overhead growth. The company will look to divest its lowest performing brands, which will aim for negative overhead growth.

Rather than conducting layoffs, the company reportedly is planning on sparking accelerated attrition. In addition, it will hire fewer brand managers. The 15% general manager position cuts will eliminate nearly 45 positions. The company did not mention which underperforming brands it plans to cut.