Unilever has recently revealed its plans to reduce one-third of all office roles in Europe by the end of 2025 in an effort to boost growth at the consumer goods company. This decision was made under the leadership of CEO Hein Schumacher, who took on the role last year and has been working towards restoring investor confidence after a period of underperformance.
The company aims to eliminate up to 3,200 positions in Europe by the end of 2025, as part of a broader productivity program that was announced earlier this year and involved a total of 7,500 job cuts. Constantina Tribou, the chief human resources officer at Unilever, mentioned during a video call that the net impact of these cuts will range between 3,000 to 3,200 roles in Europe.
Despite the company’s efforts to streamline its operations and drive growth, the news of significant job cuts has been met with concern and criticism. Hermann Soggeberg, the head of Unilever’s European Works Council, expressed his dismay in a letter to staff, highlighting the impact these cuts will have on hardworking employees who now face the risk of losing their jobs.
Unilever has been taking various steps to reshape its business and create value for its shareholders. One of the major moves was the decision to spin off its ice cream business, which includes iconic brands like Magnum and Ben & Jerry’s. This strategic shift was seen as a necessary step to address the underperformance of the company and satisfy the demands of shareholders, including activist investor Nelson Peltz.
Jack Martin, a portfolio manager at Oberon Investments, emphasized the importance of these restructuring efforts in delivering value to shareholders. While the sale of the ice cream business was a significant move, the upcoming workforce streamlining initiatives are expected to further contribute to the company’s turnaround and financial performance.
Overall, the latest announcement by Unilever regarding the reduction of office roles in Europe reflects a broader strategy to optimize operations, enhance efficiency, and drive growth in the highly competitive consumer goods industry. As the company continues to navigate these changes, the impact on employees and shareholders alike remains a key focus area that will shape the future trajectory of Unilever’s business.