Business
Unilever plans massive job cuts in Europe to boost growth
Shareholders, including activist Nelson Peltz, are putting pressure on consumer goods giants to increase growth.
![](https://images.prismic.io/eulerpool/ZpJQ3R5LeNNTxIUd_Eulerpool-AlleAktien-Unilever-plant-massive-Stellenkurzungen-in-Europa-zur-Wachstumssteigerung.jpeg?auto=false)
Unilever plans to cut about a third of all office jobs in Europe by the end of next year, as the new CEO pushes forward with his growth plans for the struggling consumer goods giant.
The company listed in the FTSE 100, which is under pressure from shareholders, including activist investor Nelson Peltz, told senior executives on Wednesday that up to 3,200 jobs in Europe are to be cut by the end of 2025. This information comes from details of a company-wide call, which are available to the Financial Times.
The job cuts are part of Unilever's "productivity program" announced in March, which aims to cut up to 7,500 jobs worldwide. The company, whose brands include Hellmann's mayonnaise and Dove soap, employs between 10,000 and 11,000 office workers in Europe.
The expected net effect on jobs in Europe between now and the end of 2025 is in the range of 3,000 to 3,200 jobs," said Constantina Tribou, Chief Human Resources Officer, during the video call.
The cuts would 'mainly affect office jobs' and not include jobs based in factories, she added.
The precise location of the job cuts in Europe has not yet been formally decided by the multinational company, whose headquarters and primary stock exchange listing have been in London since abandoning its Anglo-Dutch structure in 2020. A consultation process with the affected employees will begin in the coming weeks, Unilever said in a statement.
Hermann Soggeberg, Chairman of Unilever's European Works Council, said that almost all European office locations would be equally affected, especially the company headquarters in London and Rotterdam.
Employees who listened to the call expressed their anger during the question-and-answer session in a live commenting system, where a senior executive suggested that employees should invest their energy into the business instead of dealing with uncertainty and fear.
Instead of wasting our energy on anxious thoughts, let's use our great energy to serve our customers and consumers and make this business truly great. That is within our control," said the senior executive.
To be honest, I am very disappointed if this is the perspective towards the employees – how is that acceptable?" wrote an employee.
Complete failure to read the room, and shows no awareness of how the people there are feeling," wrote another.
Hein Schumacher, who replaced Alan Jope as CEO of Unilever a year ago, is under pressure from shareholders, especially from Peltz, to restructure the company and boost growth after years of weak financial performance.
The company announced in March that it would spin off its ice cream division to promote growth. The Netherlands-based division, which accounts for 16 percent of the group's revenue and includes brands such as Ben & Jerry’s and Wall’s, is lagging behind faster-growing categories like beauty and wellness.
Unilever also announced that it would cut 7,500 jobs worldwide, without specifying where the job cuts would take place. Unilever employs approximately 128,000 people globally.
Analyst Bruno Monteyne said that most companies in the consumer goods sector were implementing cost-cutting programs, so investors were unlikely to notice significant changes. However, the extensive cuts could lead to disruptions, especially as the company begins its restructuring.
Unilever has always placed great importance on employee satisfaction and ensuring that people enjoy working there. This aspect of their purpose-driven company is likely to suffer for a while," he said.
Unilever shares remained largely unchanged in London trading on Friday, closing up 0.6% at 44.31 pounds. The shares have risen since the announcement of the restructuring this year.
Soggeberg said that the works council, which advocates for employees' rights, is working closely with management to establish a consultation process that determines where job cuts will take place and how losses can be minimized.
Some laid-off employees could be reassigned to new roles in the spun-off ice cream division to 'reduce the number of affected colleagues,' said Soggeberg.
We will not be able to secure every job, but we must secure every person," he added. "It is the largest restructuring we have seen in the last ten years. This is shocking for the people.
A Unilever spokesperson said in a statement: "In March, we announced the launch of a comprehensive productivity program to promote focus and growth through a leaner and more responsible organization.
The spokesman added: "We recognize the significant concerns these proposals are causing among our employees. We are committed to supporting everyone affected by these changes as we undergo the consultation process.