The multinational company, headquartered in London, the United Kingdom, is yet to finalize the exact locations of the upcoming job cuts. After transitioning away from its Anglo-Dutch structure in 2020, Unilever will begin a consultation process with affected employees in the next few weeks.
Unilever’s European works council chairman, Hermann Soggeberg, mentioned that most European office locations, especially the corporate centers in London and Rotterdam, will be impacted equally by the downsizing.
During a live comments system, employees expressed anger towards an executive’s suggestion to focus on the business rather than dwell on uncertainties and anxieties.
One employee wrote, “Instead of wasting it in the anxious thoughts, let’s put our great energy in serving our customers and consumers and really making this business great. That is what is in our control.”
Another employee expressed disappointment at the executive’s viewpoint and lack of awareness of employee sentiments.
Hein Schumacher, the current chief executive of Unilever, is facing pressure from shareholders to drive growth following a period of underwhelming financial performance.
In a bid to enhance growth, Unilever announced the separation of its ice-cream division, which includes brands like Ben & Jerry’s and Wall’s, due to slower growth compared to other categories.
Unilever also revealed plans to cut 7500 jobs worldwide without specifying the targeted locations. The company employs approximately 128,000 individuals globally.
Analyst Bruno Monteyne noted that the size of the workforce reduction might disrupt the company’s turnaround efforts despite the commonplace cost-cutting initiatives in the consumer goods sector.
Unilever’s shares closed up 0.6% in London trading on Friday, reflecting investor optimism following the restructuring announcement.
Soggeberg mentioned that the works council is collaborating with management to determine the locations of the job cuts and minimize the impact on employees.
Some employees may be reassigned to new roles within the ice-cream business post the spinoff to mitigate job losses, according to Soggeberg.
Despite the job cuts, Unilever emphasizes its commitment to supporting employees through the ongoing changes and consultation process.
Written by: Madeleine Speed
© Financial Times
