Unilever to slash 1,500 fewer jobs in Europe than previously expected – ETHRWorldEMEA

Unilever is reducing job cuts in Europe and plans to hire additional staff for its ice cream business as part of its restructuring efforts, according to the European Works Council (UEWC). The company plans to cut 1,700 jobs in the region, significantly fewer than the initially expected 3,200. Additionally, Unilever intends to create 1,000 new positions in its soon-to-be-separated ice cream division, prioritizing those affected by earlier job reductions.

Under CEO Hein Schumacher, Unilever has been working to streamline its operations after facing criticism for underperformance and managing an extensive portfolio of around 400 brands. The company was also pressured by investors, including activist shareholder Nelson Peltz, to improve profit margins and adopt a leaner structure post-pandemic.

Earlier this year, Unilever announced plans to eliminate 7,500 jobs worldwide to achieve €800 million ($845 million) in annual savings. The restructuring includes spinning off its ice cream unit, which houses popular brands such as Ben & Jerry’s and Magnum. The spin-off is scheduled for completion by the end of 2025 and will be based out of a new headquarters in Amsterdam.

UEWC Chairman Hermann Soggeberg revealed that extensive negotiations led to a significant reduction in job losses in Europe. The revised plan leverages savings from projects undertaken between 2022 and 2024 while avoiding external hiring. Soggeberg also noted that the hiring process for the ice cream division will align with the broader job transition plan.

Unilever has emphasised its commitment to achieving the targeted €800 million in cost savings while mitigating the impact on its workforce.

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