Procter & Gamble Co. (NYSE:PG) will replace Chief Executive Officer Bob McDonald with his predecessor, A.G. Lafley, the struggling consumer-goods giant said in a statement Friday.

McDonald’s recent tenure has been marked by stunted growth as the world’s largest maker of consumer products battled to keep its market share over rivals such as Unilever. He tried to cut $10 billion in costs through 2016 to refocus the company, but Bill Ackman, an activist investor who bought a $1.8 billion stake in the Cincinnati-based company last year, pushed to dethrone McDonald.

Lafley, who served as the company’s president and CEO from 2000 to 2009, will take over from McDonald immediately. McDonald, six years younger than his 65-year-old replacement, will retire June 30 after 33 years. He won’t receive any severance payments.

“I wish Bob well and thank him for his service to P&G,” Lafley said in a statement. “I am confident that we will deliver strong innovation, productivity and growth to win with consumers, customers and shareholders.”

Lafley will earn an annual base salary of $2 million.

Shares in P&G rose 4.09 percent in New York by 9:40 a.m. on Friday, to $81.92.