Kenvue Announces Leadership Shakeup Amid Sales Decline and Strategic Review

Kenvue, the consumer health giant spun out from Johnson & Johnson in 2023, has announced a significant leadership transition and preliminary financial results, signaling a period of strategic realignment for the company.

CEO Transition and Board Reshuffling

Effective immediately, Thibaut Mongon, who has led Kenvue since its spinout, has stepped down from his role as CEO. The company has appointed board member Kirk Perry as interim CEO while it conducts a search for a permanent replacement. This move comes as part of what the company describes as a "set of actions" aimed at helping Kenvue "reach its full potential."

The leadership change follows the recent appointment of Amit Banati as the new Chief Financial Officer in May, replacing Paul Ruh. These executive shifts are part of Kenvue's efforts to align leadership expertise with its forward-driving strategy.

Financial Performance and Strategic Review

Along with the leadership announcement, Kenvue disclosed preliminary financial results for the second quarter of 2025, revealing a 4% decline in sales. This performance falls short of the company's previous expectations, which projected a full-year net sales change between -1% and +1% compared to the previous year.

Board chairman Larry Merlo stated that the company is "considering a broad range of potential alternatives, including ways to simplify the company's portfolio and how it operates." This strategic review comes in the wake of activist investor involvement, with Starboard Value's CEO, Jeffrey Smith, joining Kenvue's board earlier this year.

Activist Investor Influence and Future Outlook

The recent developments at Kenvue echo concerns raised by Starboard Value in a February proxy statement, which highlighted "disappointing" financial results and "ineffective board oversight" as factors hindering the company's performance. The activist investor's goal to unlock Kenvue's "trapped potential" appears to be gaining traction with these latest changes.

As Kenvue navigates this period of transition, the company plans to disclose its full quarterly outcomes and a revised 2025 sales outlook in August. The consumer health giant, known for brands such as Listerine and Tylenol, faces the challenge of reversing its sales decline while implementing strategic changes to drive future growth.