Unilever is planning to reduce a third of all office roles in Europe by the end of 2025 in an effort to boost growth at the consumer goods giant, led by CEO Hein Schumacher.
The company, with shareholders like activist investor Nelson Peltz, has been working on streamlining its operations. CEO Hein Schumacher, who took the helm last year, outlined plans in October to regain investor confidence after years of underperformance.
Unilever informed senior executives that up to 3,200 roles could be cut in Europe by 2025, as revealed in a company-wide call.
A spokesperson for Unilever stated, “We are initiating the consultation process with employees who may be affected by the proposed changes in the next few weeks.” The Financial Times was the first to report on these details.
These cuts are part of a productivity program announced in March, which included up to 7,500 job cuts. Constantina Tribou, Unilever’s chief human resources officer, mentioned during a video call that the expected net impact on roles in Europe by 2025 would be between 3,000 to 3,200.
Hermann Soggeberg, head of Unilever’s European Works Council, expressed concerns about the job cuts in a letter to staff obtained by Reuters. He highlighted that calling the cuts a “Productivity Program” seemed misleading, as productive employees were now facing job loss.
Unilever has already made changes to its business, such as the decision to spin off its ice cream business, which includes popular brands like Magnum and Ben & Jerry’s.
Jack Martin, a portfolio manager at Oberon Investments, noted, “A turnaround was necessary for an underperforming business from a shareholder’s perspective, especially with an activist investor on the shareholder register. The sale of the ice cream business was just the beginning, and further workforce streamlining is needed to create value for shareholders.”
