Procter & Gamble cuts its agencies list

Procter & Gamble, the world’s biggest advertiser, has cut the number of agencies it works with by 40% globally. The company reported a fall in net sales of 9% to US$17.79 billion from US$19.60 billion in 2014. Jon Moeller, P&G CFO, said that “in the incoming years there will be more savings to come. Most will be reinvested in stronger marketing and advertising programs”. AG Lafley, chairman and chief executive, promised to deliver stronger growth in the coming year. P&G will face big changes, as David Taylor prepares to succeed Lafley as Chief Executive. In July, the company sold off 43 of its brands, including Wella and Max Factor, for US$12.5 billion. Taylor has worked with Lafley for 20 years. The main challenge he will face is balancing the organizational culture established by the new and risky strategies of smaller competitors.