Taylor, who is currently group president of global beauty, grooming and health care, has been with P&G since 1980, helping to build many of the core businesses, including baby, family, hair and home care.
He has worked closely with Lafley over the past two years as P&G disposed of billions of dollars-worth of its businesses to narrow its focus on fewer and faster-growing brands. The latest move came earlier this month as the group agreed to offload 43 brands, including Clairol, Wella, Max Factor and Hugo Boss and Dolce & Gabbana perfumes, from the beauty business to Coty for $12.5bn.
Lafley, who ran P&G as CEO from 2000 to 2009 before returning from retirement in 2013, will stay on as executive chairman, leading the board and providing advice to Taylor on “business strategies, portfolio choices, and organisation decisions”.
“We are leading P&G’s most comprehensive transformation in our history,” Lafley said. “We are a more focused and balanced company, committed to winning with consumers and creating value for shareholders. We have strengthened our brand and product innovation pipeline, while streamlining our cost structure.
“With our plans for portfolio realignment essentially complete, P&G is positioned to deliver improved results.”
Taylor added: “I believe in the power of P&G people, brands, products and values. P&G is transforming to be a faster-growing, more profitable company.”
P&G, which owns a host of household names, including Pampers, Fairy, Gillette, Lenor, Always and Head & Shoulders, is now organised into four industry-based sectors, with a portfolio of ten categories and 65 brands.