Giant Change in Unilever to Announce New Organizational Structure

Unilever will cut 1,500 jobs and will also cut the number of junior management staff by 5%. Unilever employs around 149,000 people worldwide and the cuts are part of its restructuring plan.

On January 25, Unilever released an announcement on its website that a new organizational structure is formed. The company will be divided into five different business groups and 1,500 management positions will be reduced.

According to its latest announcement, the company will be organized around five different business groups: Beauty & Wellness, Personal Care, Home Care, Nutrition and Ice Cream. What was once the Beauty & Personal Care division was divided into Beauty & Wellness and Personal Care.

The company had previously revealed that following a comprehensive review of the company’s organizational structure, it “intends to move from the existing matrix to an operating model that enables greater agility, improved category focus and enhanced accountability” to achieve its goal of improving performance.

Moreover, Unilever has also officially announced a series of personnel changes, with appointments effective April 1, 2022.

Fernando Fernandez, currently executive vice president of Latin America, has been appointed president of beauty and wellness which includes some business such as hair care, skincare, VMS (vitamins, minerals and supplements) and premium beauty. Fabian Garcia, currently president of North America, was named president of Personal Care, with responsibility for the skin cleansing, deodorant and oral care businesses.

Sunny Jain, formerly President of Beauty and Personal Care, has decided to leave Unilever and set up an investment fund in the area of technology megatrends.

Peter ter Kulve will continue as President, Home Care, with responsibility for the Fabric Care, Home & Hygiene and Water & Air businesses.

Unilever’s proposed new organizational model will result in a reduction of approximately 15% in senior management positions and 5% in junior management positions, equivalent to approximately 1,500 positions globally. In addition, Unilever does not expect factory teams to be impacted by these changes.

It is worth noting that Unilever had recently prepared to acquire GlaxoSmithKline’s consumer healthcare business offering $68.371 billion in cash and stock. The company was looking for a “strong strategic fit”. However, the deal has not yet progressed.

Unilever CEO Alan Jope said other acquisitions could still be improved in the next step. Jope himself said in early January that GSK’s consumer business was not the only acquisition target. He also said that Unilever’s goal is to make acquisitions in the consumer health sector and divest underperforming businesses.



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