Unilever Wants to Cut One-Third of European Workers by 2025 – 2024-07-17 05:01:14

Unilever logo.(AFP)

UNILEVER plans to cut a third of its workforce in Europe by the end of 2025. This comes following the consumer goods giant announced in March that it would cut costs affecting around 7,500 jobs globally.

The company said it would begin a consultation process with those affected by the layoffs in Europe regarding the layoffs of around 3,200 workers in the region. “We recognise the significant concerns these proposals have raised in the community,” it said in a statement.

The changes are part of an effort to revive the company’s growth under Hein Schumacher, who took over as CEO last year following years of poor performance. The impact of the layoffs is not yet clear.

Unilever has major offices in London and Rotterdam, where it had dual headquarters for decades before deciding in 2020 to unify its legal structure in the UK. At the time, it said it would not affect staff.

“These steps amount to the biggest job cuts at Unilever for decades,” Hermann Soggeberg, chairman of Unilever’s European Works Council, said in a letter to staff.

A Unilever spokesperson said, “In March, we announced the launch of a comprehensive productivity programme, to drive focus and growth through a leaner, more accountable organisation.”

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The plan also includes a decision to split its ice cream business, which includes Wall’s, Ben & Jerry’s and Magnum brands. Unilever says the overhaul will help it do fewer things better.

In the UK, the company produces ice cream in north-east Gloucestershire, Marmite and Bovril in Burton-on-Trent, and Pot Noodles in Newport, and employs a total of 6,000 staff. “From a shareholder perspective, a turnaround is clearly needed in an underperforming business,” said Jack Martin, portfolio manager at Oberon Investments.

Unilever is one of the world’s biggest consumer goods companies, with brands including Dove beauty, Persil washing machines and Lynx body spray. In May, Unilever apologised following being reported to the UK’s Environment Agency following soap water was improperly diverted from its powdered soap factory into a polluted river. (BBC/Z-2)