News: Unilever unveils major layoff plan: 7,500 jobs axed to fuel growth strategy

Talent Management

Unilever unveils major layoff plan: 7,500 jobs axed to fuel growth strategy

The company also unveiled intentions for the Ice Cream division to function independently and launched a substantial productivity initiative. This strategic decision is geared towards optimising operations and enhancing the company's concentration.
Unilever unveils major layoff plan: 7,500 jobs axed to fuel growth strategy

By now, nearly every industry or sector has felt the impact of layoffs. As leaders grapple with restructuring their companies, employees are facing joblessness and dire economic conditions. The latest addition to this list is Unilever.

The company announced on Tuesday that it will lay off 7,500 employees worldwide as part of its efforts to expedite its Growth Action Plan (GAP). The company aims to reduce jobs on a global scale and foresees restructuring costs totalling approximately 1.2% of its revenue over the next three years. 

Unilever stated, "The proposed changes are expected to affect approximately 7,500 primarily office-based positions globally, with restructuring costs now estimated to be around 1.2% of Group turnover for the next three years, up from the previously communicated around 1% of Group turnover." 

The company also revealed plans for the Ice Cream division to operate as a separate entity and introduced a significant productivity program. This strategic move aims to streamline operations and sharpen the company's focus. 

According to the company's press release, separating the Ice Cream division will expedite the execution of its Growth Action Plan (GAP), announced in October 2023. The GAP emphasises prioritising key initiatives for enhanced effectiveness, driving consistent and robust revenue growth, boosting productivity and operational simplicity, and fostering a performance-driven culture. 

Noting the distinct operating model of the ice cream business, which includes popular brands like Magnum and Ben & Jerry's, the company's Board decided on the separation to best support the future growth trajectories of both entities. 

"Unilever stated, 'Ice Cream has a very different operating model, and as a result, the Board has decided that the separation of Ice Cream best serves the future growth of both Ice Cream and Unilever.'" 

The productivity program introduced by Unilever is expected to generate total cost savings of approximately $869 million (€800 million) over the next three years. 

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Topics: Talent Management, #Layoffs, #HRTech, #HRCommunity

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