Yes, the Unilever that you associate with products like Hellmann’s mayonnaise and the Dove soap. Well, they have made some major forecasts that are going to impact many people in Europe. Therefore, let me get to the point and tell you exactly what’s going to happen!
What’s Happening?
Unilever is a giant British firm that produces and sells practically all the things we use in our daily lives, and they want to let go of about 3,200 workers in Europe by 2025 at the latest. That is like losing one-third of their office staff in the area!
Why the Layoffs?
The main cause of these dismissals is something that Unilever terms a ‘productivity program.’ In other words, they just wish to streamline affairs. Just like when you tidy your home up because you want to find your things quicker. By laying off some people, they feel that they will be able to find a way of making things move faster.
Who Will Be Affected?
Most of the layoffs are expected to be among office workers. Therefore, if you are operating in a factory, for instance, to manufacture Dove soap or pack Hellmann’s mayonnaise, you are safe. Unilever employs about 10,000 to 11,000 office staff in Europe, these are the ones that will be most affected.
Who Will Be Affected?
Unilever has not specified where in Europe these measures will be initiated, but it appears that nearly all of their office headquarters will be affected. This includes their large corporate offices in London and Rotterdam. Therefore, if you know people who work in those offices, they could be nervous right now.
Leadership Changes
Unilever changed its CEO roughly one year ago, and he is Hein Schumacher. He succeeded the former CEO, Alan Jope. Hein has his work cut out for him particularly when it comes to shareholders’ demands and more so Nelson Peltz who seeks to improve the fortunes of Peltz.
What About the Employees?
An employee, a manager from Unilever, said to the others to continue doing their job and serve the customers without worrying much on the dismissal news. It is somewhat akin to the conditions where one is instructed to go and play and continue having fun even if there is smoke on the horizon. The concept is to ensure that the business is operational while they continue to occur.
Global Impact
The productivity program does not stop at Europe alone. Unilever’s plans reveal that it is thinking over on cutting up to 7,500 employees worldwide. So, it is not just a European issue – the employees of Unilever in all the countries may be worried about what comes next.
Final Thoughts
This major restructuring process in the Unilever organization is in an attempt to make the organization efficient financially. For those employed in the offices it is a situation of insecurity and transition. But perhaps, these steps will assist Unilever to achieve its goals and remain a strong participant in the industry of consumer goods.
If you ever find yourself with a bar of Dove soap in your shower or a bowl of Hellmann’s mayonnaise in the refrigerator, think of the reasons for why Unilever is not doing financially well.
