Unilever to cut 7,500 jobs worldwide

Unilever has laid off 7,500 employees globally in a move to 'accelerate its Growth Action Plan (GAP)' on Tuesday, March 19, 2024.

The company plans to cut jobs worldwide, and expects the total restructuring costs to be about 1.2 per cent of its revenue over the next three years.

"The proposed changes are expected to impact around 7,500 predominantly office-based roles globally, with total restructuring costs now anticipated to be around 1.2 per cent of Group turnover for the next three years (up from the around 1 per cent of Group turnover previously communicated)," said the company.

The company also announced the separation of the Ice Cream division as a standalone business and the launch of a major productivity programme. It said that the decision had been taken to become a 'simpler and more focused company'.

"The separation of Ice Cream will assist Unilever’s management to accelerate the implementation of its GAP, announced in October 2023, which is focused on doing fewer things, better, with greater impact to drive consistent and stronger topline growth, enhance productivity and simplicity, and step up Unilever’s performance culture," said the company in a press release.

Home to popular brands such as Magnum and Ben & Jerry's, it explained that the ice cream business has a very different operating model, and as a result the Board has decided on the separation as it bet serves the future growth of both.

"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," said Unilever.

The productivity programme announced by Unilever is anticipated to deliver total cost savings of around $869 million (€800 million) over the next three years.

Shares of Unilever saw a surge of over 4 per cent, trading at Rs 3,974 at the time this article was being written.