Unilever, the global personal care giant, is implementing layoffs at two of its manufacturing plants in New York, specifically in Amityville and Farmingdale on Long Island. According to a filing to the New York Labor Department, a total of 169 layoffs are expected to occur in April 2024, with the majority taking place at the Amityville location.
The decision to end manufacturing of beauty and personal care products at the Amityville plant is part of Unilever’s strategy to realign production and support its growth plans for these product categories. The spokesperson for Unilever stated that the Amityville factory site has limitations in terms of size, which hinders its ability to expand. As a result, production will be transferred to other locations within Unilever’s U.S. manufacturing network. Additionally, operations at the plant’s warehouse in Farmingdale will also cease.
Unilever is offering its affected employees the opportunity to apply for open positions at other Unilever sites, and relocation assistance will be provided. The company is committed to providing outplacement services, reskilling education, and development training to support the affected employees during this transition.
In October, Unilever’s new CEO, Hein Schumacher, unveiled an “action plan” aimed at simplifying and streamlining the business. The company’s focus will be on its top 30 “power brands,” including Dove, Dermalogica, Paula’s Choice, and Pond’s, which have been experiencing faster growth and generating a significant portion of the company’s turnover. Schumacher emphasized the importance of leveraging science and technology across the brands and concentrating on a smaller number of significant opportunities.
Simultaneously, Unilever announced the sale of Dollar Shave Club to Nexus Capital Management LP, a U.S.-based private equity firm. Unilever will retain a 35 percent minority stake in Dollar Shave Club, known for its razors, electric trimmers, and men’s grooming products.