Unilever to Cut 1,500 Jobs in Structure Reorganization -- Update

By Michael Susin

Unilever PLC said Tuesday that it will cut around 1,500 management jobs and simplify the business into five distinct groups as part of a plan to boost growth.

The London-listed consumer-goods company--which houses the Ben & Jerry's and Marmite brands as well as Cif and Domestos among its portfolio--said each group will be fully responsible for its strategy, growth and profit, while a corporate center will set the overall strategy.

The businesses will be divided into Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream, it said.

Unilever said the new model will reduce senior management roles by around 15% and junior management roles by 5%.

The changes aren't expected to affect factory teams.

"Moving to five category-focused business groups will enable us to be more responsive to consumer and channel trends, with crystal-clear accountability for delivery. Growth remains our top priority and these changes will underpin our pursuit of this," Chief Executive Alan Jope said.

Late Monday, The Wall Street Journal reported that the company was planning to cut thousands of jobs as part of a reorganization aimed at speeding up its decision making, citing a person familiar with the matter.

The Journal and others reported over the weekend that Nelson Peltz's Trian Fund Management LP had acquired a stake in Unilever, just days after the company abandoned its $68 billion bid for GlaxoSmithKline PLC's consumer-healthcare business, after being rebuffed on the price.

Under the new structure, Fernando Fernandez has been appointed as president of beauty & wellbeing; Fabian Garcia as president of personal care; Peter ter Kulve will continue to lead home care; Hanneke Faber will be the head of nutrition; and Matt Close will head ice cream. The appointments are effective starting April 1.

The company has been under pressure to accelerate growth. In November, it failed to sell a string of beauty and personal-care brands after it didn't attract a high enough bid.

Shares at 1002 GMT were down 8.5 pence, or 0.2%, at 3,935.0 pence.

Write to Michael Susin at [e-mail]

(END) Dow Jones Newswires

January 25, 2022 05:20 ET (10:20 GMT)

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