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Tide-maker Procter & Gamble resurrects AG Lafley as CEO

Cincinnati: Procter & Gamble is bringing back former CEO AG Lafley to its top post in a surprise move as the world's largest consumer goods maker tries to grow globally.
Lafley, 65, replaces CEO Bob McDonald, effective immediately. McDonald, who will retire 30 June after a transition period, served as CEO since 2009. Lafley previously held the role from 2000 to 2009.
Under McDonald, P&G, which makes Tide detergent, Crest toothpaste and other household goods, has been cutting costs and ramping up innovation to offset a weakened European economy and slowing growth in China.
P&G is in the middle of a cost-cutting plan aimed at saving $10 billion by 2016. But investors have been frustrated by slow revenue growth and stagnant market share gains globally.
'It sounds like the board needed a change at the top,' said Bernstein analyst Ali Dibadj. 'Clearly frustration was very high.'
The pressure stepped up last July, when activist investor William Ackman, took a 1 percent stake. He has been vocal about the company's need to streamline operations and improve market share globally.
Last year, P&G acknowledged that it had made missteps in some emerging markets which make up nearly 40 percent of its sales when it expanded in certain product areas too quickly. ap
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