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Key Takeaways
- Unilever is in discussions with employees about layoffs, with the Financial Times reporting that a third of its European office staff will be cut.
- The FT said Unilever would be eliminating 3,000 to 3,200 positions by the end of next year.
- Unilever announced a shakeup in March, including the elimination of 7,500 positions globally and the spinoff of its ice cream division.
Unilever (UL) said it is discussing layoffs with employees following news that the diversified consumer products company would be slashing a third of its office staff in Europe.
In an email response to Investopedia on Friday, a Unilever spokesperson pointed to the company’s March launching of a comprehensive productivity program intended to make “a leaner and more accountable” organization.
Unilever ‘Starting the Consultation Process With Employees’
The spokesperson noted that over the next few weeks the company would be “starting the consultation process with employees who may be impacted by the proposed changes.”
The Financial Times was the first to report that employees were told in a video call Wednesday that by the end of next year Unilever would be eliminating 3,000 to 3,200 positions in Europe. The paper added that a representative for Unilever workers said almost all of the company’s European offices would be affected, but especially the corporate centers in London and Rotterdam, Netherlands.
The March announcement explained that the plan would include a total reduction of “around 7,500 predominantly office-based roles globally.” It also included the spinoff of Ben & Jerry’s and the rest of its ice cream division. The company has about 128,000 workers worldwide.
Unilever has been under pressure from activist investor Nelson Peltz to make changes. He reportedly supported the shakeup.
Unilever’s American depositary receipts (ADRs) advanced 1.7% as of noon ET to $57.56, their highest level in almost three years.