Kenvue Announces CEO Transition Amid Sales Decline and Strategic Review

Kenvue, the consumer health giant spun out from Johnson & Johnson in 2023, has announced a significant leadership change and preliminary financial results that signal challenges for the company. The news comes as Kenvue faces pressure from activist investors and embarks on a comprehensive strategic review.

CEO Transition and Board Shakeup

Effective immediately, Thibaut Mongon, who has led Kenvue since its spinout from Johnson & Johnson, has stepped down as CEO. The company has appointed board member Kirk Perry as interim CEO while a search for a permanent replacement is conducted. This leadership transition is part of a broader set of actions aimed at helping Kenvue "reach its full potential," according to a company press release.

Larry Merlo, Kenvue's board chairman, stated, "We are considering a broad range of potential alternatives, including ways to simplify the company's portfolio and how it operates." The CEO change follows the recent appointment of a new CFO, Amit Banati, who joined the company in May from Kellanova (formerly Kellogg Company).

Sales Decline and Financial Outlook

Alongside the leadership announcement, Kenvue disclosed preliminary financial results showing a 4% decline in sales during the second quarter of 2025. This performance falls short of previous expectations, as the company had earlier projected full-year results to bring a net sales change of -1% to +1% compared to the previous year.

The company, known for brands such as Listerine mouthwash and Tylenol pain reliever, plans to release its full quarterly outcomes and a revised 2025 sales outlook in August. The current sales slip underscores the challenges facing Kenvue in a competitive consumer health market.

Activist Investor Influence and Strategic Review

The leadership change and strategic review come in the wake of increased pressure from activist investors, particularly Starboard Value. In February, Starboard outlined a goal to unlock the company's "trapped potential," pointing to "disappointing" financial results and "ineffective board oversight" as factors hindering Kenvue's performance.

Following negotiations, Kenvue reached a "cooperation agreement" with Starboard that saw its CEO, Jeffrey Smith, join the company's board. This move, along with the recent leadership changes, suggests that Kenvue is actively responding to investor concerns and seeking to improve its operational and financial performance.

As part of its strategic review, Kenvue is focusing on ensuring it has "the right talent, brand portfolio and operational foundation," according to Merlo. This comprehensive approach indicates that the company may be considering significant changes to its business structure and product lineup in the coming months.