Unilever, a well-known London-based consumer goods company managing popular brands such as Dove, Ben & Jerry’s, Hellman’s, and Vaseline, is currently facing significant pressure from its investors. After experiencing a 10% decline in stock value in 2021 and encountering unsuccessful attempts at acquiring major brands, shareholders are pushing for growth and demanding action from Unilever.
In response to this pressure, Unilever has announced the reduction of approximately 1,500 managerial positions from its global workforce of nearly 149,000 employees. This equals about 15% of senior managerial roles and 5% of junior managerial roles, with a focus solely on managerial positions without affecting factory workers.
The purpose behind these cuts is to streamline Unilever’s operations. Moving forward, the company will organize its business into five separate units, each led by a dedicated vice president: Beauty and Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream.
Unilever is cutting 1,500 management jobs around the world as the consumer goods giant comes under intense pressure from shareholders to boost growth https://t.co/IJgeCxz1E9
— CNN (@CNN) January 25, 2022
Unilever’s CEO, Alan Jope, believes that this restructuring effort will enable the company to better respond to consumer and market trends with clear accountability for results.
“Our primary focus is on growth, and these changes will support our efforts in achieving this goal,” he stated.
Despite a 1% drop in the company’s stock value at the start of trading today, Unilever experienced a 10% gain yesterday following news of prominent investor and Wendy’s chairman Nelson Peltz acquiring a substantial stake in the company.
