Unilever announces job cuts as it reviews business structure

Unilever plans to cut 1,500 jobs as it restructures operations in the wake of its unsuccessful bid for GSK Consumer Healthcare. 

In addition, the company has simplified its current structure into five business groups: beauty & wellbeing, personal care, home care, nutrition and ice cream. 

The five categories will be supported by Unilever Business Operations although “each group will be fully responsible and accountable for its strategy, growth and global profit delivery,” a company statement said. 

The proposed business model will result in a significant reduction of senior management roles – which currently account for around 15% of Unilever’s employment. The company aims to create more junior management roles (5%).

“Our new organisational model has been developed over the last year and is designed to continue the step-up we are seeing in the performance of our business. Moving to five category-focused business groups will enable us to be more responsive to consumer and channel trends, with crystal-clear accountability for delivery. Growth remains our top priority and these changes will underpin our pursuit of this.” explained Alan Jope, CEO of Unilever.

The move comes after Unilever’s £50 billion failed takeover of GlaxoSmithKline‘s consumer health business last week and subsequently Trian Partners acquiring a stake in the company.

According to Unilever, these changes are subject to consultation.