Unilever plans to cut one third of office roles in Europe by the end of 2025, the Financial Times reported today.
The company announced the move as its new chief executive Hein Schumacher proceeds with his plan to boost growth at the struggling consumer goods unit.
Unilever told senior executives on Wednesday that as many as 3,200 roles would be cut in Europe by the end of next year, according to a company-wide call shared with FT.
The jobs cuts are the latest part of Unilever’s “productivity programme” which was first announced in March and includes slashing as many as 7,500 jobs globally.
In the same announcement, the company said it would spin off its ice cream business in a move that is expected to be complete at the end of 2025.
Impacted Jobs
A chief human resources officer with the company Constantina Tribou said on the call, “The expected net impact in roles in Europe between now and the end of 2025 is in the range of 3,000 to 3,200.”
Tribou added that the cuts would apply to “primarily office-based roles” and will not include jobs in factories.
The exact location of job cuts in Europe is yet to be formally decided, although chair of Unilever’s European Works Council Hermann Soggeberg said almost all European locations would be equally affected.
He added that the corporate centres in London and Rotterdam may be impacted more.
Employees listening to the call expressed anger in the live comments section, to which one executive responded by suggesting that they put their energy into the business rather than anxiety.
The executive said, “Instead of wasting it in the anxious thoughts, let’s put our great energy in serving our customers and consumers and really making this business great.
“That is what is in our control.”
‘Biggest Restructure’
Soggeberg said the works council was liaising with management on consultation where jobs were cut and how to minimise the losses.
He said that some who are let go could be assigned to new roles in the ice cream business once it spun off “in order to reduce the number of affected colleagues.”
“We will not be able to safeguard every job, but we need to safeguard every person,” he added.
“It’s the biggest restructure we have seen in the last decade. This is shocking for the people.”
In a statement, a Unilever spokesperson said, ‘We recognise the significant anxiety that these proposals are causing amongst our people.
‘We are committed to supporting everyone through these changes, as we go through the consultation process.’
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