Unilever to Slash One-Third of European Office Roles by 2025

Unilever has announced plans to cut approximately one-third of its office-based roles in Europe by the end of 2025. This move is part of a broader strategy to reduce costs and revive growth under the leadership of CEO Hein Schumacher, who took over last year following a period of underperformance.

The consumer goods giant, known for brands like Dove, Persil, and Lynx, revealed that around 3,200 jobs in Europe will be affected as part of this restructuring. This comes after a March announcement that the company would cut about 7,500 roles globally to drive focus and efficiency.

A consultation process will begin with the affected employees in Europe. “We recognise the significant anxiety that these proposals are causing among our people,” Unilever said in a statement, acknowledging the impact on its workforce.

The exact locations of the job cuts have not been specified, but Unilever has major offices in London and Rotterdam. These cities served as dual headquarters until 2020 when Unilever unified its legal structure in the UK, a change it initially claimed would not affect staffing levels.

Hermann Soggeberg, head of Unilever’s European Works Council, described the proposed cuts as the largest in decades in a letter to staff. A company spokesperson highlighted that the cuts are part of a comprehensive productivity programme launched in March to streamline operations and promote growth.

This programme also includes plans to spin off Unilever’s ice cream business, which features brands such as Wall’s, Ben & Jerry’s, and Magnum. The company believes that focusing on fewer areas will improve overall performance.

In the UK, Unilever employs 6,000 people and operates facilities in various locations, including an ice cream production site in north-east Gloucestershire, Marmite and Bovril manufacturing in Burton-on-Trent, and Pot Noodles production in Newport.

Jack Martin, a portfolio manager at Oberon Investments, commented on the restructuring: “From a shareholder’s point of view, a turnaround was clearly required at an underperforming business.”

Unilever, one of the world’s largest consumer goods companies, also recently faced environmental scrutiny. In May, the company apologised after soapy water from its soap powder factory was incorrectly diverted into an already-polluted river, leading to a report to the UK’s Environment Agency.