Unilever Job Cuts and Hiring Update

By Richa Naidu

LONDON (Reuters) — Unilever is cutting about 1,500 fewer jobs in Europe than initially anticipated and hiring around 1,000 people, primarily affected by its cost-cutting drive, for its upcoming ice cream business spinoff, as reported by the head of the company's European Works Council.

The British company, whose shareholders include billionaire activist investor and board member Nelson Peltz, has been working to streamline its business over the past year under CEO Hein Schumacher.

Prior to Schumacher's appointment, Unilever (LON:ULVR) had faced criticism for its underperformance and for allowing its brand portfolio to escalate to around 400, leaving management unable to adequately focus on its best performers.

Some investors indicated that Unilever was too slow to revive margins in the post-COVID-19 landscape and needed to adopt a leaner approach.

Earlier this year, Unilever announced plans to cut 7,500 jobs globally as part of a restructuring aimed at saving about 800 million euros ($845 million). The company also revealed plans to spin off its ice cream unit, which includes brands such as Ben & Jerry's and Magnum.

The European Works Council (UEWC) criticized these actions, asserting that the ice cream business could be realigned within Unilever rather than spun off.

UEWC Chairman Hermann Soggeberg disclosed to Reuters that a deal was reached in October with Unilever, reducing the anticipated job cuts in Europe from about 3,200 to roughly 1,700.

"We have been negotiating intensely with the company throughout the summer," Soggeberg stated.

He mentioned that while Unilever is still achieving its promised savings to investors, it managed to substantially decrease job cuts in Europe through savings projects spanning 2022 to 2024, in addition to avoiding external hires.

Approximately 1,000 new jobs will be offered within Unilever's European ice cream company, primarily to those affected by cuts in the rest of the business.

"They are planning for growth in ice cream," Soggeberg added. "We agreed with Unilever that the hiring process would align with the job cut program."

The spinoff of the ice cream business is anticipated to complete by the end of 2025; Unilever previously indicated a transition to a separate head office in Amsterdam.

A Unilever spokesperson affirmed, "We remain fully on track to deliver the 800 million euros in savings from our productivity program."

Furthermore, the spokesperson emphasized, "We were determined to mitigate the impact of these changes on our people, and we are pleased with the outcomes in Europe."

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