Unilever plans to cut about 1,500 fewer jobs in Europe than expected and will hire around 1,000 workers. This hiring mainly targets those affected by previous job cuts related to its ice cream business, which will be spun off. CEO Hein Schumacher has been working to streamline the company, which faced criticism over its large brand portfolio and slow recovery after the Covid-19 pandemic.
Originally, Unilever announced a global reduction of 7,500 jobs to save around 800 million euros ($845 million). The European Works Council (UEWC) indicated that Unilever would reduce job losses from an initial estimate of 3,200 in Europe to about 1,700. UEWC Chairman Hermann Soggeberg confirmed the deal, saying that the cuts were managed through savings projects rather than external hiring.
How is Unilever supporting employees who are affected by the job cuts and restructuring process?
Interview with Hermann Soggeberg, Chairman of the European Works Council (UEWC)
NewsDirector3.com: Thank you for joining us today, Hermann. Unilever has recently announced significant changes to its workforce in Europe. Can you clarify the current status of the job cuts originally planned?
Hermann Soggeberg: Thank you for having me. Yes, Unilever’s plans have evolved, and we will see a reduction in job losses from the initial estimate of 3,200 in Europe to approximately 1,700. This decision comes as part of a broader strategy to streamline operations while also addressing the concerns of our workforce.
NewsDirector3.com: That’s a considerable shift. What factors led to this reduction in job cuts?
Hermann Soggeberg: The reductions were managed mainly through various savings projects. Unilever has focused on efficiency gains and restructuring rather than relying solely on layoffs. We believed it was essential to mitigate the impact on our people, especially given the challenging circumstances that many have faced due to the pandemic.
NewsDirector3.com: Alongside the job cuts, there are plans to create new positions. Can you explain the rationale behind hiring around 1,000 workers within the ice cream division?
Hermann Soggeberg: Absolutely. The hiring initiative primarily targets those affected by prior job cuts, particularly in the ice cream sector, which is undergoing a spin-off. It’s our aim to ensure that those who lost their jobs can find new opportunities within the company. This approach reflects Unilever’s commitment to its employees and ensures a smoother transition as the ice cream business becomes independent.
NewsDirector3.com: The spin-off of the ice cream business is set for 2025. What does this mean for the company’s future and its brand portfolio?
Hermann Soggeberg: The spin-off is a strategic move designed to allow both Unilever and the ice cream division to focus on their specific goals. Unilever is in the process of refining its brand portfolio, aiming for a quicker and more agile recovery from the pandemic’s impact. This separation will enable both entities to operate more freely and effectively, maximizing their potential in their respective markets.
NewsDirector3.com: Unilever’s restructuring plans follow a significant reduction in its global workforce. What are your thoughts on how these changes will influence employee morale and company culture?
Hermann Soggeberg: Change can be difficult, and it’s vital we approach this with transparency and support for our employees. By ensuring that job cuts are balanced with new opportunities, we hope to foster a culture of resilience and adaptability. Communication has been key, and we’re working closely with management to make certain that our employees feel valued and secure throughout this transition.
NewsDirector3.com: Thank you, Hermann, for sharing these insights regarding Unilever’s current situation and future plans. It’s clear that while there are challenging adjustments being made, there’s also a focus on employee welfare and strategic growth.
Hermann Soggeberg: Thank you for the opportunity to discuss these important matters.
Approximately 1,000 new positions will be created in the ice cream division, aligning with job cuts across other sections of the company. Unilever aims to complete the spin-off of its ice cream business by the end of 2025, moving it to a separate office in Amsterdam. A company spokesperson assured that the goal of 800 million euros in savings is on track, emphasizing the effort to minimize the impact on employees.
