Unilever Lowers Planned Layoffs In Europe, Moves Some Employees To Ice Cream Business

The firm also intends to place a hold on hiring and will allow the natural attrition to cut down the number of employees who felt the impact of the decision to slash jobs

The entity finalised a deal with the firm’s European Works Council to trim down the headcount reduction and this will help the company save nearly 1,500 jobs.

Source : Unilever

Unilever Plc has managed to strike a deal that will help the firm reduce the job cuts announced earlier. The entity finalised a deal with the firm’s European Works Council to trim down the headcount reduction and this will help the company save nearly 1,500 jobs.

The company informed that it will shift about 1,000 jobs to the ice cream unit, reported Moneycontrol. Additionally, the firm also intends to place a hold on hiring and will allow the natural attrition to cut down the number of employees who felt the impact of the decision to slash jobs.

Citing a spokesperson from the company, the report noted, “We remain fully on track to deliver the 800 million euros savings from our productivity programme.”

Notably, in July, Unilever said that it plans to reduce a third of all office jobs in Europe by 2025 end, to boost growth. These layoffs were announced as a part of a productivity programme which included nearly 7,500 job cuts.

Earlier in March, CEO Hein Schumacher, said that he would cut off the ice cream unit which has been underperforming and begin a cost-cutting programme at the company to secure investor confidence. This will help simplify the business after years of underperformance, the executive said. 

The separation of the ice cream unit was announced by the company last month. The company’s board confirmed the decision via a statement and said this followed recommendations from an independent committee formed in September 2023. 

This committee found that the ice cream business contributed to nearly 3 per cent of the overall turnover. The company said, “This will allow the ice cream business to operate with greater flexibility and focus.”