Copyright © BusinessAMBE 2023

Unilever embarks on major restructuring efforts and cuts third of European office jobs

As part of its efforts to restore growth and boost investor confidence, consumer goods giant Unilever has announced plans to cut a significant number of office jobs in Europe by the end of 2025. This major restructuring is expected to affect some 3,200 positions across the continent.

The news comes at a time when CEO Hein Schumacher is continuing his efforts to transform the company, which has underperformed in recent years. The productivity program, announced earlier this year, aims to cut about 7,500 jobs worldwide.

Job cuts to spur growth

According to Unilever's Chief Human Resources Officer, Constantina Tribou, the expected net impact on positions in Europe will be between 3,000 and 3,200 by the end of 2025. The move marks a major shift for the company, which has already taken steps to revamp its operations as part of its plans to revitalize growth.

In March, Unilever announced plans to divest its ice cream business, home to popular brands such as Magnum and Ben & Jerry's. The decision was seen as an important step to revitalize the company's growth. Cutting the latest jobs is another step aimed at streamlining operations and delivering value to shareholders.

Shockwaves

The news has sent shock waves through the company and some employees will lose their jobs. Hermann Soggeberg, head of Unilever's European Works Council, has spoken out against the decision. He argues that it is a misnomer to call the cuts a "productivity program," when people who have worked and been productive are now at risk of losing their jobs.

For investors, the news is likely to be seen as a positive sign that Unilever is taking concrete steps to address its lagging results. Billionaire activist investor and board member Nelson Peltz is an outspoken advocate for change at the company. His presence on the shareholder register may have contributed to the pressure on Unilever to take decisive action.

Creating value for shareholders

As Jack Martin, portfolio manager at Oberon Investments, notes, "Clearly a turnaround was needed at an underperforming company... The sale of the ice cream business was the first step, but the measures to streamline the workforce in the coming months show that much work remains to be done to create value for shareholders."

With these significant job cuts on the horizon, Unilever's employees and investors will be watching closely how the company implements its plans. As the consumer giant continues its journey toward transformation, one thing is clear: change is on the way at Unilever.

© The Content Exchange, source News