Unilever, a leading British multinational in the consumer goods section, wants to get rid of one in three European office jobs, or 3,200 employees.
According to an internal video call, offices in London and Rotterdam are said to be hit hardest, the Financial Times reported on July 12.
Unilever plans to cut the 3,200 jobs by the end of 2025, as part of its “productivity programme” that was initially unveiled in March and involved the elimination of up to 7,500 jobs worldwide. In Europe, the corporation has between 10,000 and 11,000 office-based employees.
Unilever employs approximately 128,000 staff worldwide.
“The expected net impact in roles in Europe between now and the end of 2025 is in the range of 3,000 to 3,200 roles,” said Constantina Tribou, a chief human resources officer, during the video call.
Unilever aims to slash costs by around €800 million over a three-year period. The consumer goods giant has for some time been under intense scrutiny from dissatisfied shareholders who argue that the company’s profitability is inadequate.
As part of its broader restructuring efforts, Unilever announced in March its intention to separate from its Netherlands-based ice cream division, which makes up 16 per cent of groups sales. This unit, which produces popular brands such as Ola, Magnum, Hertog and Ben & Jerry’s, is expected to be spun off through an initial public offering (IPO).
Still, the company has not finalised this decision, including the potential listing location. The move would align with Unilever’s strategy to streamline operations and boost profitability.
The sale of the ice cream division comes as it falls behind faster-growing categories such as beauty and wellbeing.
A Unilever spokesperson said in a statement: “In March, we announced the launch of a comprehensive productivity programme, to drive focus and growth through a leaner and more accountable organisation.
“We recognise the significant anxiety that these proposals are causing amongst our people. We are committed to supporting everyone through these changes, as we go through the consultation process.”
In May 2023, Follow The Money revealed that Unilever had doubled its profits in Russia, despite promising to reduce its presence in the country because of the war in Ukraine.
According to the Dutch investigative FTM, #Unilever's profit in Ruzzia increased from €57M in 2021 to €110M last year, citing data from the Russian Chamber of Commerce. Advertising spending in the country was also higher, reaching €259M, compared to €234M the previous year. pic.twitter.com/1ToSiipwXX
— Ben Esmeil (@BenEsmael1) May 15, 2023
