Unilever, Maker of Marmite, Announces Plans to Cut 7,500 Jobs
Unilever, the renowned consumer goods firm responsible for household brands like Marmite and Domestos, has unveiled plans to slash 7,500 jobs globally as part of its restructuring efforts. This move comes as the company aims to adapt to advancing technology and streamline its operations for improved efficiency.
Proposed Job Losses and Focus Areas:
The proposed job cuts, affecting approximately 128,000 staff worldwide, will primarily target office roles as Unilever embraces technological advancements. The UK, home to 6,000 Unilever employees, will also be impacted, with a particular focus on head office staff. Consultations with affected employees commenced once the specific roles had been identified.
Uncertainty Over UK Job Impact:
Marc Woodward, the UK and Ireland head at Unilever, stated that it's too early to determine the exact impact on UK jobs. He emphasized the importance of discussing any potential implications with UK staff, particularly those in head office roles, once more information becomes available.
Spin-Off Plans for Ice Cream Business:
In addition to the job cuts, Unilever announced plans to spin off its ice cream business, which includes popular brands like Ben & Jerry's, Magnum, and Cornetto, by the following year. The company aims to explore various options to maximize shareholder returns while creating a simpler and more focused organization.
Financial Targets and Productivity Programme:
Unilever outlined its financial targets post-demerger, aiming for mid-single-digit underlying sales growth and modest margin improvement. The company expects its productivity program to yield total cost savings of approximately €800 million (£984 million) over the next three years, with restructuring costs estimated to be around 1.2% of turnover during this period.
CEO's Statement:
Hein Schumacher, Unilever's chief executive, emphasized the company's commitment to executing its Growth Action Plan, focusing on fewer initiatives with greater impact. This strategic approach aims to position Unilever for sustainable growth and long-term success in the competitive consumer goods market.
As the company navigates these changes, it remains focused on achieving its financial targets and delivering value to customers and investors alike.
