Unilever to Cut 3,200 Jobs in Europe
British giant Unilever, a leading producer of health and food products, is planning to cut around 3,200 jobs in Europe by the end of next year as part of a larger plan to eliminate a total of 7,500 positions, which was announced in March, a source familiar with the matter told the French Agency today.
“In the coming weeks, we will begin the consultation process with employees who may be affected by the proposed changes,” a Unilever spokesperson said in a statement sent to the French Agency.
Job Cuts Expected in European Offices by 2025
Approximately 3,200 positions are expected to be eliminated in Europe by the end of 2025, representing about one-third of office jobs on the continent, according to a source familiar with the matter who confirmed information from the Financial Times.
The specific locations and countries where the company will make cuts have not been officially decided yet, but it is expected to mainly affect facilities in London and Rotterdam, according to the Financial Times.
“We are aware of the significant concern these proposals are causing,” said the source.
Unilever Faces Challenges in Profitability
Unilever, one of the largest consumer goods companies in the world, has seen a 15% decrease in its net profits last year. Despite this, the company announced a slight increase in its revenue in the first quarter.
Under pressure to improve the group’s performance, especially from investor and American billionaire Nelson Peltz, who has been on the board since 2022, CEO Hen Su-Maher presented a strategic plan to address the challenges facing the company.
Company Strategy Shift: Focusing on Top Brands
In October, the company announced a new strategy to enhance its performance by focusing on 30 of its most well-known commercial brands, which represent 70% of the company’s revenue.
Exiting the Ice Cream Market
Back in March, the company’s CEO revealed plans to exit the ice cream market, which includes popular brands like Ben & Jerry’s and Magnum. This decision is part of a resource-saving initiative aimed at boosting profit margins, with an expected 7,500 job cuts, accounting for nearly 6% of the workforce.
