Lafley will replace CEO Bob McDonald, effective immediately. McDonald, who will retire June 30 after a transition period, has been CEO since 2009.
Lafley, who served as CEO of the company from 2000 to 2009, also was named chairman and president.
"It sounds like the board needed a change at the top," said Bernstein analyst Ali Dibadj to The Associated Press. "We thought maybe there would be a little bit more of a test runway for current management, but clearly, frustration was very high."
Pandora Media (P - Get Report), the online radio service, on Thursday posted first-quarter revenue that topped expectations. The company's revenue outlook also topped Wall Street estimates as its mobile advertising sales accelerated and the company added more subscribers during the quarter. Pandora Surges on Revenue Strength
Salesforce.com (CRM - Get Report) reported first-quarter results and an outlook on Thursday that either only matched or came in below estimates as its efforts to strengthen its presence in marketing software appears to going more slowly than expected. The company said it expects second-quarter earnings of 11 cents to 12 cents a share, in line with estimates, on revenue of $931 million. Analysts were calling for second-quarter revenue of $934.55 million. Salesforce.com predicted fiscal-year 2014 earnings of 47 cents to 49 cents a share on revenue of $3.835 billion to $3.875 billion, vs. expectations of 49 cents a share on revenue of $3.87 billion. Salesforce.com Slumps on Outlook, ChannelAdvisor Stabilizes After Debut
Sears (SHLD - Get Report), the department-store chain, reported a wider-than-expected loss for its first quarter on slumping sales. Sears also announced it was considering selling its protection-agreement business in an ongoing effort to raise cash.
Abercrombie & Fitch (ANF - Get Report) is expected by analysts to post on Friday a first-quarter loss of 5 cents a share on revenue of $941.3 million.
Gap (GPS - Get Report) reported first-quarter profit and revenue. on Thursday that topped expectations.