In a bid to accelerate organisational growth, Unilever’s new CEO plans to eliminate approximately a third of the firm’s office roles in Europe by the end of 2025. The proposed cuts, which potentially could amount to around 3,200 positions, were presented to high-ranking executives during a company-wide call on Wednesday. Under this scheme, the consumer goods behemoth, listed on the FTSE 100 and facing increasing pressure from shareholders such as Nelson Peltz, foresees a substantial reduction in staff members across Europe.
With over 6,000 employees in the UK and Ireland, including Dublin, the move is expected to significantly impact the company’s workforce. Unilever’s ‘productivity programme’, initially unveiled in March, proposes to axe up to 7,500 jobs globally. Furthermore, the company employs between 10,000 and 11,000 office-bound personnel in Europe.
According to Constantina Tribou, Unilever’s chief human resources officer, who spoke during the virtual meeting, the company anticipates a net reduction in European positions of between 3,000 and 3,200 by the end of 2025. The reductions will predominantly focus on office-related roles, excluding manufacturing-based jobs.
While the precise locations of staff reductions across Europe have yet to be decided formally, the multinational corporation’s main base and primary listing are both in London, following its abandonment of the Anglo-Dutch framework in 2020. A consultation phase regarding the cuts is scheduled to kick off over the next few weeks with the employees affected, confirmed Unilever.
Almost all European office sites are likely to be equally affected, with the corporate centres in London and Rotterdam bearing much of the cuts, revealed Hermann Soggeberg, chair of Unilever’s European Works Council. Despite an executive’s comments urging staff to channel their energy into the business and not to dwell on the anxiety, many employees voiced their discontent and frustration on the live comment system during the question-and-answer session.
Hein Schumacher, the current CEO of Unilever who stepped into Alan Jope’s shoes a year ago, is facing significant pressure from key shareholders including Peltz, to revamp the company and kickstart growth following a prolonged period of weak financial results.
In March, Unilever declared plans to split off its ice cream segment, in an attempt to expedite growth. The division, based in The Netherlands – representing 16% of the group’s total sales and comprising well-known brands like Ben & Jerry’s and Wall’s – has been underperforming compared to more dynamic sectors such as beauty and health.
The company also disclosed plans to eliminate 7,500 positions globally without indicating where these reductions would take place. Unilever currently employs approximately 128,000 individuals globally.
According to Soggeberg, the workers’ council, an entity that advocates for employee rights, is in talks with management to identify where these job cuts will be implemented and how to limit the losses.
Some potentially affected employees might be relocated to new positions in the ice cream sector once it’s segregated, in an effort to “decrease the amount of impacted colleagues”, Soggeberg stated.
“Even though not every role can be preserved, we must ensure every individual is protected,” he added. “This is the largest overhaul we’ve encountered in the previous decade. It’s a shocking upheaval for our staff.”
A spokesperson for Unilever stated in a recent press release: “In March, we declared the initiation of an extensive efficiency initiative, aiming to promote focus and growth through a streamlined and responsible organisation.”
The spokesperson also noted, “We acknowledge the profound worry that these plans are creating among our employees. We vow to support everyone affected by these shifts as we progress through the consultation phase.”