The answer to your question is usually no (which is fortunate because the lack of complete reducibility gives modular representation theorists something to do), starting for example with the tensor product of two irreducible representations of $G$ over an algebraically closed field whose prime characteristic divides the group order.   Examples for finite groups of Lie type are legion and come up naturally when you tensor the Steinberg representation with an arbitrary one: then you get a projective module whose indecomposable direct summands are rarely irreducible.   Textbooks like those by Jon Alperin, Curtis-Reiner, Serre, or me on modular representations illustrate such outcomes of tensoring.

ADDED: Concerning failure of complete reducibility in general, see also the related MO question <a href="https://mathoverflow.net/questions/18280/">18280</a>.
For references to some older literature on tensoring with the Steinberg representation, see the third section of my 1987 AMS Bulletin survey 
<a href="http://www.ams.org/journals/bull/1987-16-02/home.html">here</a>.

<a href=http://www.ams.org/journals/bull/1987-16-02/S0273-0979-1987-15512-1/S0273-0979-1987-15512-1.pdf">here</a>.