Unilever to cut a third of office-based roles in Europe by 2025

The consumer goods firm has said that Unilever intends to cut a third of its office-based roles in Europe by the end of 2025.

Major Job Cuts Announced

Unilever, the global consumer goods giant, has announced plans to cut one-third of its office-based roles in Europe by the end of 2025.

This decision follows the company’s broader strategy to cut costs, which was revealed in March and is expected to impact approximately 7,500 positions globally.

European Workforce Impact

The company has stated that it will begin a consultation process with employees affected by the cuts in Europe. Approximately 3,200 jobs are expected to be eliminated in the region. Unilever acknowledged the anxiety these proposals are causing among its workforce, emphasizing the difficulty of the decision.

Leadership and Strategic Changes

These changes are part of a broader effort to revive growth at Unilever under the leadership of CEO Hein Schumacher, who took over last year.

The company has faced underperformance in recent years, prompting significant restructuring efforts. It remains unclear exactly where the job cuts will occur, but Unilever has major offices in London and Rotterdam.

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Historical Context and Recent Developments

Unilever maintained dual headquarters in London and Rotterdam for decades before unifying its legal structure in the UK in 2020, a move that was initially stated to not affect staffing.

Hermann Soggeberg, head of Unilever’s European Works Council, noted that these measures represent the biggest job cuts in the company for decades.

Productivity Programme and Business Divisions

A Unilever spokesperson mentioned the launch of a comprehensive productivity programme aimed at creating a leaner and more accountable organization.

This includes the decision to split off its ice cream business, which encompasses brands such as Wall’s, Ben & Jerry’s, and Magnum. The company believes this shake-up will allow it to focus better on fewer priorities.

UK Operations and Apology for Environmental Incident

In the UK, Unilever produces various well-known products, including ice cream in north-east Gloucestershire, Marmite and Bovril in Burton-on-Trent, and Pot Noodles in Newport. The company employs around 6,000 staff in the UK.

Earlier this year, Unilever apologized for an environmental incident involving the incorrect diversion of soapy water from its soap powder factory into an already-polluted river, which was reported to the UK’s Environment Agency.

Investor Perspective

From an investor’s viewpoint, these drastic measures are seen as necessary. Jack Martin, a portfolio manager at Oberon Investments, highlighted that a turnaround was clearly required for an underperforming business.

Unilever remains one of the largest consumer goods companies globally, with brands like Dove, Persil, and Lynx.

This significant restructuring marks a pivotal moment for Unilever as it seeks to streamline operations and drive future growth.