Unilever has announced plans to cut one-third of its office jobs across Europe, significantly impacting its London and Rotterdam offices the most. According to an internal video message reported by the Financial Times, the cuts will result in the loss of approximately 3,200 jobs out of the 10,000 to 11,000 employees currently working in Unilever’s European offices.
This drastic move is part of a broader global restructuring effort that Unilever unveiled in March. The reorganization aims to reduce overhead costs by €800 million over the next three years. This decision comes amid mounting pressure from shareholders who have criticized the company for its insufficient profit margins and have been calling for more aggressive cost-cutting measures.
In addition to job cuts, Unilever announced its intention to sell its ice cream division, which includes well-known brands such as Ola, Magnum, Hertog, and Ben & Jerry’s. While the company is considering an initial public offering (IPO) for this segment, no final decision has been made regarding the specifics of the sale or the location of the potential IPO. This move is seen as a strategic effort to streamline operations and focus on core business areas that can drive higher profitability.
Despite the significant impact on office staff, Unilever has assured that the job cuts will not extend to its manufacturing positions. The company employs around 127,000 people worldwide, with a presence not only in Europe but also in North and South America, Asia, Africa, and the Middle East. Unilever has emphasized its commitment to supporting all employees affected by these changes and will be providing assistance throughout the consultation process.
The restructuring highlights the challenges faced by large multinational corporations in balancing cost efficiency with maintaining a motivated and stable workforce. As Unilever navigates these changes, it remains focused on its long-term goals of increasing profitability and shareholder value, while also recognizing the substantial impact these decisions have on its employees’ lives.