One of the world’s largest consumer goods companies, Unilever, cut 1,500 management jobs worldwide, describing the move as “simplifying the organisation,” a result of intense pressure from shareholders to enhance growth, as reported by CNN.
Unilever issued a statement on Tuesday saying factory workers will not be affected by the recent job cuts, which amount to a 15 percent reduction in the number of senior management employees and five percent in junior management.
Notably, Unilever employs approximately 149,000 people worldwide.
The Multinational company, which owns huge brands such as Knorr, Omo and Dove, said it’s switching to a “simpler” company structure with five business units with a president for each one.
The units are:
- Beauty and Wellbeing
- Personal Care
- Home Care
- Ice Cream
“Our new organisational model has been developed over the last year and is designed to continue the step-up we are seeing in the performance of our business. 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.”– Unilever’s CEO, Alan Jope
A Look at Shares and Shareholders
After a 10 percent drop in stocks in 2021, shareholders have put more and more pressure on the company to take action.
Shares bounced back last week after Unilever disclosed that their USD68 billion offer to acquire GlaxoSmithKline’s consumer health care business has been rejected.
One of Unilever’s biggest shareholders, Fundsmith, described the failed takeover as a “near death experience.”
Fundsmith’s CEO, Terry Smith, criticized the Unilever in a letter to investors at the beginning of the year, accusing the company of prizing publicity-driven sustainability efforts over “the fundamentals of the business.”
The company’s shares increased seven percent on Monday in London, after it was reported that Nelson Peltz, the Wendy’s (WEN) chairman and legendary activist investor who is best known for targeting Mondelez and Procter & Gamble, is investing in Unilever.
Source: CNN and Unilever
Photo Credit: Yahoo News
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