Unilever has announced plans to cut off 7,500 jobs globally to achieve savings of around 684 million euros ($869 million) over the next three years.
Speaking on the development, Chief Executive Officer of Unilever, Hein Schumacher said, “Under the growth action plan, we have committed to do fewer things better, and with greater impact.
“The changes we are announcing today will help us accelerate that plan.”
“We are committed to carrying out our productivity programme in consultation with employee representatives, and with respect and care for those of our people who are impacted.”
While the specifics of the job cuts remain undisclosed, Unilever assures that affected employees will be consulted throughout the process, which is anticipated to unfold over the next two years.
Unilever, which has a global workforce of 128,000 employees, including 6,000 in the UK, has not disclosed the precise locations where the job reductions will occur.
In a related development, Unilever also announced plans to spin off its ice cream division. According to a media report, Ian Meakins, Unilever’s chair, said “The separation of the ice-cream business and the execution of the productivity initiative will streamline Unilever, enhancing focus and performance.
“Additionally, it will cultivate a leading ice cream entity with promising growth prospects as a standalone venture.”
In addition, Matt Britzman, an equity analyst at Hargreaves Lansdown, noted, “Unilever’s decision to divest its ice-cream segment signals a proactive move by the new leadership, addressing shareholder expectations.
“The performance challenges faced by the ice-cream business, alongside its divergence from Unilever’s core product lines, justify this strategic shift, which previous management failed to implement.”
The spin-off is slated for completion by the end of 2025. Post-separation, Unilever will consolidate into four divisions: beauty and wellbeing, personal care, home care, and nutrition.