New York, NY, United States (4E) – Procter & Gamble Co. said it will sell or discontinue up to 100 brands over the next two years to reduce costs and focus on its core product lines.
The decision is an important strategy shift for a company that grew in size for years. The latest move reflects concerns among P&G executives and investors that the company has become too huge to operate in an increasingly competitive market.
Chief Executive A.G. Lafley said he is reevaluating the firm’s portfolio of brands in order to narrow its focus since coming back to the top post in 2013. Earlier this year, Mr. Lafley had sold majority of the company’s pet-food businesses, such Eukanuba and Iams, for $2.9bn.
The world’s biggest consumer-products company has popular brands that include Gillette razors, Pampers diapers and Tide detergents.
P&G’s earnings for the year climbed just 3 percent to $11.6bn, and its annual sales have shown just single-digit growth in terms of percentage.