Unilever Plans to Cut Thousands of Office Jobs to Improve Performance

Unilever, the owner of the brands Marmite and Dove, will cut 3,200 office jobs across Europe as part of an effort to become a simpler, more tightly run company. The move is part of a bigger fight to enhance performance and trim 7,500 posts globally. These reductions will largely cover office staff at the company and are purposed to help regain confidence and spur them into growth.

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Sky News reports that Unilever, the company behind popular brands such as Marmite and Dove, is preparing to axe up to 3,200 office jobs across Europe as part of an efficiency drive. According to reports, human resources chief Constantina Tribou told senior executives about the planned cuts during a company-wide call. The axe is expected to mostly fall on office staff rather than factory workers.

Unilever has about 128,000 employees worldwide and 6,000 in the UK. There are around 10,000 to 11,000 employees that Unilever has working in offices in Europe. The targeted job cuts are just one portion of a more detailed and wide-ranging plan to lower the international workforce by 7,500. All of these alterations are to result in a “simpler, more focused company”.

It’s Hein Schumacher who is at the navegating the change, who stepped in as Unilever’s chief executive last July. It’s an under-pressure post he took in the wake of packing the corporation’s poor performance. Since then, he has been rebuilding the belief in Unilever, which many investors criticized for focusing too much on social purposes at the expense of profit.

In October, Schumacher denied he would insist all Unilever brands have a social purpose, because in some cases it would not be relevant, or could even prove a distraction, for some products. He has come under fire from shareholders, including well-known fund manager Terry Smith, who accused the company of “virtue signaling.” Smith once said: “A company which feels it has to define the purpose of Hellmann’s mayonnaise has, in our view, clearly lost the plot.”

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Unilever had for the first time hinted at the prospect in March while outlining a program to cut jobs and restructure. It is part of a broader revamp that entails the separation of its ice cream business and the sale of its beauty brands. This comprehensive program for productivity is designed to drive focus and growth through a leaner, more accountable organization.

“A more representative Unilever spokesperson commented on the forthcoming transformations: “In March, we announced the launch of a comprehensive productivity program to drive focus and growth through a leaner and more accountable organization. Over the next few weeks, we will start the consultation process with employees who may be impacted by these proposed changes.”

Representative said the rumour of the proposed cuts in office had caused anxiety to all but assured of support for the workers by his company in a consultation process.

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Takeaway: Unilever announced on Tuesday plans to slash thousands of office jobs in Europe, part of a broader plan to make the consumer goods giant simpler and more focused. Such steps are required by the need to boost performance and help Unilever regain confidence and achieve growth.

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