Consumer goods giant Unilever has announced plans to cut around 7,500 jobs globally as part of efforts to save around 684 million euros an equivalent of $869 million dollars over the next three years.
The Marmite-to-Dove soap firm said the jobs affected were largely office-based and the move came as it looked to invest in technology to boost productivity and save money.
The group said staff would be consulted about the cuts but did not reveal where they will be made.
The jobs were expected to go over the next two years.
Unilever has 128,000 employees globally, with 6,000 in Britain.
Chief Executive Hein Schumacher said, “under the growth action plan we have committed to do fewer things better and with greater impact.
“The changes we are announcing today will help us accelerate that plan.”
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He added that “we are committed to carrying out our productivity program in consultation with employee representatives, and with respect and care for those of our people who are impacted.”
Schumacher is among the FTSE 100’s top-paid bosses, and could make up to £14 million this year depending on bonuses.
Head of Investment at Interactive Investor, Victoria Scholar said the moves to boost margins were influenced by activist investor Nelson Peltz, who made similar changes at rival Procter & Gamble and sits on the Unilever board.
Besides slashing jobs, Unilever is also set to spin out its ice cream arm, which includes Ben & Jerry’s, Magnum and Cornetto. It said the business is run differently to most of its other divisions and so should be run under a “different ownership structure”. Unilever sold €7.9 billion worth of ice cream last year.
While it said it had not made a final decision on the best path for the ice cream division, a demerger is the “most likely” option. Schumacher said Unilever would choose the route that maximizes value for our shareholders for the ice cream business.
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