Kenvue has ousted CEO Thibaut Mongon and announced a strategic review of its business.
The leadership shake-up comes amid falling sales and job cuts at the Neutrogena and Aveeno owner.
Kirk Perry, currently a Director at Kenvue, has been named interim CEO with immediate effect while the company hunts for a permanent replacement.
Kenvue said in a statement that its Board of Directors “is implementing a set of actions to enable the company to unlock shareholder value and reach its full potential”.
Larry Merlo, Kenvue’s Chair of the board, commented: “Kenvue has world-class brands in attractive categories and a strong global platform. said.
"The actions announced today are to ensure we have the right talent, brand portfolio and operational foundation to fully capitalise on those strengths, accelerate profitable growth and best position the company for future success.”
“The board’s strategic review is underway, and we are considering a broad range of potential alternatives, including ways to simplify the company’s portfolio and how it operates.
“At the same time, with the CEO transition and recent appointment of a new CFO, we are aligning leadership expertise to drive the company forward.
“We are confident that the steps we are taking put Kenvue on the right path to deliver both near- and long-term value creation for shareholders.”
Mongon, who has also stepped down as a member of Kenvue’s board, had led Kenvue since it was spun off from Johnson & Johnson (J&J) in 2023.
Previously Mongon spent two decades at J&J in various roles.
Meanwhile, Perry brings to the position 30 years of experience in global consumer packaged goods, technology and business transformation.
“I have seen firsthand Kenvue’s many strengths and share the board’s confidence in the company’s growth and value creation opportunities,” said Perry.
“As interim CEO, I am excited to leverage my decades of experience leading businesses across the consumer and technology industries, and work with the board and leadership team to put the business on the strongest footing to deliver on Kenvue’s full potential and realise our goal of top-tier financial performance.”
A strategic review of the business will consider “a broad range of potential alternatives” for the business, Kenvue said.
This includes “optimising the company’s brand portfolio, while improving execution and enhancing operating performance to accelerate profitable growth and unlock the inherent value in Kenvue” the company said.
Aveeno, Neutrogena, Johnson’s, Tylenol and Dr.Ci:Labo are among the brands included in the consumer brand owner’s portfolio.
A strategic review committee has been established and Kenvue is being advised by Centerview Partners and McKinsey & Company
An update on their progress is expected when it announces its next financial results for the second quarter on 7 August.
In the company’s announcement of the leadership shake-up and review, it also revealed preliminary sales for the period which covers the three months to 29 June.
Net sales were down 4% and organic sales down 4.2%, while diluted earnings per share were $0.21 to $0.22, or $0.28 to $0.29 on an adjusted basis.
In the first quarter net sales fell by 3.9% to $3.7bn, which the company attributed to an organic sales decline of 1.2% and foreign currency headwinds.
Skin care and beauty sales also declined by 7.3% during the three-month period.
Despite the rocky financial update on 9 May, the overall results beat analyst expectations and saw shares in the company jump as much as 6.5%.
Amit Banati was also announced at the time as its new CFO, effective from 12 May.