Unilever reduces layoffs in Europe, transfers staffs to ice cream unit

EUROPE – Unilever Plc has revised its workforce reduction strategy in Europe, significantly reducing the number of planned job cuts.

The company initially announced a reduction plan to eliminate 7,500 positions as part of a broader productivity initiative.

However, following negotiations with its European Works Council, Unilever will now save approximately 1,500 jobs by transferring 1,000 employees to its ice cream division and relying on natural attrition to further reduce headcount.

A company spokesperson highlighted that the revised plan would not affect Unilever’s financial goals, stating, “We remain fully on track to deliver the €800 million savings from our productivity programme.”

The company had previously outlined plans to reduce one-third of office jobs in Europe by the end of 2025 to enhance operational efficiency and drive growth.

The ice cream division, which represents about 3% of Unilever’s total turnover, has been under scrutiny for its underperformance.

CEO Hein Schumacher, who took office earlier this year, emphasized the importance of restructuring the unit to regain investor confidence.

In March, he announced a plan to separate the ice cream business into a standalone entity, providing it with greater operational and financial flexibility.

Unilever’s board confirmed the decision last month, stating that the separation would allow the ice cream business to focus more effectively on market-specific demands and innovation.

In addition, the company retained its ice cream production operations in Russia, even as geopolitical tensions persist as part of a strategy to maintain a foothold in the Russian market while managing associated challenges.

Meanwhile, the ice cream business is expanding its product portfolio in the UK to capture a share of the US$3.9 billion snacking market.

New offerings include Magnum Bonbon, a bite-sized treat, and revamped Ben & Jerry’s Peaces, featuring flavors such as Salted Caramel Brownie and improved Cookie Dough.

Additionally, Carte D’Or’s Mini Indulgence range offers smaller portions, catering to consumers seeking convenience and variety.

These developments coincide with Unilever’s ambitious climate strategy. The company is on track to transition all its manufacturing operations to renewable electricity by 2025, five years ahead of its original target.

Recent partnerships, including a 12-year Power Purchase Agreement with Enel North America and an agreement with Alabama Power, underscore Unilever’s commitment to sustainability.

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