Unilever jobs cuts in Europe: What we know so far

Posted by Admin July 17, 2024 Jobs

It’s been four months since Unilever announced plans to spin-off its ice cream portfolio, made up of famed brands such as Wall’s, Magnum, and Ben & Jerry’s.

At the time, the company announced plans to reduce headcount as part of its ‘productivity programme’. 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 2025

“In March, we announced the launch of a comprehensive productivity programme, to drive focus and growth through a leaner and more accountable organisation,” a Unilever spokesperson said this week.

“We are now, over the next few weeks, starting the consultation process with employees who may be impacted by the proposed changes.”

Although the job cuts are global, as many as 3,200 are expected to be impacted in Europe by the end of 2025. That’s according to alleged details of a company-wide call shared with the Financial Times.

According to the British newspaper’s reporting, employees on the call expressed anger in the live comments system, which was met with this response from an executive: “Instead of wasting it in the anxious thoughts, let’s put our great energy in serving our customers and consumers and really making this business great. That is what is in our control.”

A Unilever spokesperson has since expressed more sensitivity in a statement: “We 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.”

What’s happening with Unilever’s ice cream business?

In the four months since Unilever first announced its ice cream spin-off plans, little progress has been made – at least publicly. Last month, Unilever CFO Fernando Fernandez reconfirmed the company’s stance that ice cream is a ‘clear outlier’ in the portfolio, and that it ‘makes sense’ for it to operate as a standalone business.

As to exactly how the business will be separated, we’re 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 €7.9bn business.

While under Unilever’s control, the ice cream business continues to grow. Recent financial results 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 company’s nutrition business – which grew 2.3% – tells a similar story.