Recently, during the Bernstein Strategic Decision Conference, Unilever’s Chief Financial Officer announced that the company is cutting 17% of its workforce along with other significant changes, stating, “This is unprecedented for Unilever.”
As Unilever’s CFO, he discussed the reduction of 17% of white-collar employees and efforts to shift corporate culture, emphasizing, “This will certainly not make everyone happy, but we firmly believe in doing the hard but right thing for the long term, rather than taking the easy but wrong path.”
He noted that with Alan Jope bringing a refreshing outsider perspective as CEO, current company meetings are now based on facts, intolerant of mediocrity, and resistant to accepting reality.
“When you reduce the workforce by 17%, the average quality of employees can significantly improve, and the average cultural fit should also enhance greatly because we won’t let go of those who can fundamentally drive cultural transformation,” Fernandez pointed out.
“I believe that every corner of the company is starting to feel the impact. It’s tough, and certainly not easy; sometimes it feels like fighting against a much stronger opponent every day,” Fernandez pointed out. Despite the challenges, Unilever is confident in its current direction and believes it is making significant progress. He also noted that a substantial reduction in staff will lead to changes in company culture in a short period, gradually getting back on track.
It was reported that in March this year, Unilever announced it would lay off 7,500 employees globally, about 5.9% of its total workforce. Recently, Unilever plans to cut one-third of its office positions in Europe, resulting in approximately 3,200 job cuts by the end of 2025.
Additionally, Unilever has sold several beauty brands this year. In June, it sold its Elida Beauty business, including over 20 brands; in August, it considered selling its premium skincare brands Kate Somerville and REN Clean Skincare.
According to Unilever’s latest financial report, the company achieved revenue of €31.1 billion in the first half of 2024, a 2.3% year-on-year increase. Operating profit reached €5.9 billion, up 7.8% year-on-year.
