Unilever is implementing a cost-cutting “productivity programme” that will result in the reduction of up to 3,200 office jobs in Europe. The multinational company, famous for its Ben & Jerry’s ice cream brand, aims to reduce costs by €800m ($867.8m) by 2027. This initiative has sparked consultation with 7,500 global employees affected by the restructuring.
Senior executives revealed that Unilever expects a net decrease of 3,000 to 3,200 roles in Europe by the end of 2025. Despite recognizing the anxiety caused by these proposals, the company is committed to supporting its employees through the consultation process.
Hermann Soggeberg, head of Unilever’s European Works Council, expressed concerns about the magnitude of these job cuts, stating that productive employees are now facing layoffs. The scale of these cuts marks the largest workforce reduction at Unilever in decades.
In addition to office job cuts, Unilever previously announced plans to spin off its ice cream business into a separate entity. This move aims to enhance the company’s operational and financial agility by creating a more focused business.
During the first quarter of 2024, Unilever reported a 0.4% decline in volumes for its nutrition division, which includes popular brands like Marmite and Colman’s mustard. However, underlying sales for the nutrition unit increased by 3.7%. In contrast, the ice cream unit saw a 2.3% growth in sales, despite a 0.9% decline in volumes.
Unilever’s decision to restructure its operations underscores the ever-changing landscape of the food and beverage industry. As companies navigate consumer trends and market demands, strategic initiatives like cost-cutting and business separations become crucial for maintaining competitiveness. Stay informed about the latest industry trends by signing up for our daily news round-up. Gain valuable insights to give your business an edge in the dynamic food and beverage sector.
