Unilever jobs cuts in Europe: What we know so far
Itâs been four months since Unilever announced plans to spin-off its ice cream portfolioâ, made up of famed brands such as Wallâs, Magnum, and Ben & Jerryâs.
At the time, the company announced plans to reduce headcount as part of its âproductivity programmeâ. Unilever is moving forward with this decision, which it expects will impact around 7,500 predominantly office-based roles globally.
The consultation process is now getting underway.
Unilever to cut 3,200 jobs in Europe by end of 2025ââIn March, we announced the launch of a comprehensive productivity programme, to drive focus and growth through a leaner and more accountable organisation,â a Unilever spokesperson said this week.
âWe are now, over the next few weeks, starting the consultation process with employees who may be impacted by the proposed changes.â
Although the job cuts are global, as many as 3,200 are expected to be impacted in Europe by the end of 2025. Thatâs according to alleged details of a company-wide call shared with the Financial Timesâ.
According to the British newspaperâs reporting, employees on the call expressed anger in the live comments system, which was met with this response from an executive: âInstead of wasting it in the anxious thoughts, letâs put our great energy in serving our customers and consumers and really making this business great. That is what is in our control.â
A Unilever spokesperson has since expressed more sensitivity in a statement: âWe 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.â
Whatâs happening with Unileverâs ice cream business?âIn the four months since Unilever first announced its ice cream spin-off plans, little progress has been made â at least publicly. Last month, Unilever CFO Fernando Fernandez reconfirmed the companyâs stanceâ that ice cream is a âclear outlierâ in the portfolio, and that it âmakes senseâ for it to operate as a standalone business.
As to exactly how the business will be separated, weâre none the wiser, but Unilever previously predicted a demerger would be the most likely route. As far as FoodNavigator understands, Unilever has not found a buyer for the âŹ7.9bn business.
While under Unileverâs control, the ice cream business continues to grow. Recent financial resultsâ reveal its ice cream business grew 3.7% in Q1 this year, but digging deeper into the figures suggests growth is being fuelled by price, rather than volume.
This is specific to food and beverage, and indeed the companyâs nutrition business â which grew 2.3% Â â tells a similar story.