Consumer goods giant Unilever is set to cut as many as 7,500 jobs, “predominantly” in London ,as its new CEO brings in a massive restructuring program after warning that the Cornetto-to-Dove behemoth’s 2023 results were disappointing.
It will launch “a comprehensive productivity programme,” to save €800 million (£684 million) over the next three years. A total of 7,500 roles, mostly based in offices, will be affected.
The restructuring costs alone could cost more than €700 million.
Unilever has its headquarters in Victoria. The firm has 6,000 staff in the UK and a global workforce of 127,000 people.
The major reorgnisation of the firm comes under new boss Hein Schumacher, who took over last year.
In his first set of full-year results last month, the company repeatedly called its own performance “disappointing”
Schumacher today 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, focusing our business and our resources on global or scalable brands where we can apply our leading innovation, technology and go-to-market capabilities across complementary operating models.
“Simplifying our portfolio and driving greater productivity will allow us to further unlock the potential of this business, supporting our ambition to position Unilever as a world-leading consumer goods company delivering strong, sustainable growth and enhanced profitability.
“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.”
Schumacher is among the FTSE 100’s top-paid bosses, and could make up to £14 million this year.
The firm is also planning to spin off its ice-cream arm, which includes both the Magnum and Ben & Jerry’s brands.
It said the business is run differently to most of its other divisions, in sectors like, and so should be run under a “different ownership structure”.
While it said it had not made a final decision on the best path for the ice cream division, Unilever said the “most likely” option was a demerger.
Unilever brands include Dove, Marmite, Magnum, Ben & Jerry’s, Cornetto, Hellman’s and Persil.
Unilever shares are down 5.7% over the past year, valuing the firm at just under £100 billion.
