Unilever yesterday announced plans to cut around 1,500 management jobs worldwide under a major restructure of the British consumer goods giant.
The Marmite-to-Dove soap maker is planning to axe around 15 per cent of senior management roles and 5 per cent of more junior management roles under a restructure to create five business divisions.
“Junior management roles would be cut by five per cent. Together the cuts totalled around 1,500 roles globally,” read the statement by the firm.
It said the jobs will go across the UK and its worldwide operations by the end of the year, but did not give a breakdown of where the cuts will be made.
Chief Executive of Unilever, Alan Jope, said “Our new organisational model has been developed over the last year and is designed to continue the step-up we are seeing in the performance of our business.
“Moving to five category-focused Business Groups will enable us to be more responsive to consumer and channel trends, with crystal-clear accountability for delivery.”
Unilever plans to create five distinct business groups: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream.
“Each business group will be fully responsible and accountable for their strategy, growth, and profit delivery globally,” he said.
The announcement comes after the maker of Magnum ice cream and Dove soap failed with a £50 billion takeover bid for the consumer health care unit owned by pharmaceutical groups GlaxoSmithKline and Pfizer.
Details of the job cuts comes as Unilever faces growing pressure from investors over an ill-fated £50 billion takeover approach for GlaxoSmithKline’s consumer healthcare arm.
It abandoned its pursuit after GSK rebuffed the advances for undervaluing the division and following a sharp fall in Unilever’s share price on news of the approach.
A group of major asset managers and shareholders investors, backed by Share Action, slammed Unilever last week, while it was also heavily criticised by leading fund manager Terry Smith.
The saga then took another turn when it emerged on Monday that New York-based activist hedge fund Trian Partners, run by billionaire Nelson Peltz, had built up a stake in Unilever ramping up pressure on the group’s bosses.
Unilever said last week it would reveal details of a reorganisation by the end of January.
The plans will see it organised around five units, beauty and wellbeing, personal care, home care, nutrition, and ice cream.
It announced a raft of leadership changes for the new divisions, which will take place in April.
Consultations on the wider job losses have also been launched.
