Unilever Announces New Organizational Model, Includes Cutting 1,500 Jobs

Unilever is making changes to its organizational model to make it “a simpler, more category-focused business,” which includes cutting thousands of jobs across 100 countries.
 
The company will move away from its current matrix structure and will be organized around five distinct Business Groups: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream. Each Business Group will be fully responsible and accountable for their strategy, growth, and profit delivery globally.
 
Alan Jope, CEO Unilever, explains, “Our new organizational 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.”
 
To enable Unilever to benefit from its scale and global capabilities, the five Business Groups will be supported by Unilever Business Operations, which will provide the technology, systems, and processes to drive operational excellence across the business. A lean Unilever Corporate Center will continue to set Unilever’s overall strategy.

Layoffs

The proposed new organization model will result in a reduction in senior management roles of around 15% and more junior management roles by 5%, equivalent to around 1,500 roles globally. Changes will be subject to consultation. Unilever does not expect factory teams to be impacted by these changes.

Leadership Changes

As a result of the new set-up, Unilever is making changes to its leadership team:
 

• Fernando Fernandez, EVP Latin America, has been appointed President Beauty & Wellbeing, which includes Hair Care, Skin Care, as well as Vitamins, Minerals and Supplements, and Unilever Prestige.
• Fabian Garcia, President North America, has been appointed President Personal Care, responsible for Skin Cleansing, Deodorants, and Oral Care.
• Peter ter Kulve will continue in his role as President Home Care, responsible for Fabric Care, Home & Hygiene, and Water & Air.
• Hanneke Faber, President Foods & Refreshment, has been appointed President Nutrition, which will be home to Scratch Cooking, Healthy Snacking, Functional Nutrition, Plant-Based Meat, and Food Solutions.
• Matt Close, EVP Ice Cream, has been appointed President Ice Cream, a Business Group in its own right.

 
These appointments are effective from April 1, 2022.
 
Also:
 

• Nitin Paranjpe, Chief Operating Officer (COO), will take on a new role as Chief Transformation Officer & Chief People Officer, leading the business transformation, and heading the HR function.
• Reginaldo Ecclissato, Chief Supply Chain Officer, will lead the Supply Chain and Unilever Business Operations as Chief Business Operations Officer.
• Sunny Jain, President Beauty & Personal Care, has decided to leave Unilever to set up an investment fund in technology megatrends. Other members of the Unilever Leadership Executive (ULE) will remain in role, including Sanjiv Mehta who will retain executive leadership of Hindustan Unilever.

 
All costs related to setting up the new organization will be managed within existing restructuring investment plans.