Unilever has acknowledged it will cut fewer jobs than previously anticipated in Europe, with some roles to move to its ice-cream business.
The prospect of job losses emerged in March as the FMCG giant announced a wave of cuts alongside a plan to spin off its ice-cream operations into a separate entity.
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Unilever’s plans set off market speculation as to whether the ice-cream arm, home to brands including Magnum, might be sold entirely to an outside buyer.
“When we announced the programme, we were determined to mitigate the impact of these changes on our people and so we are pleased that we have achieved this in Europe through a combination of role transfers to our ice-cream business, a hiring freeze and natural attrition,” Unilever said via a spokesperson today (15 November).
“This has reduced the number of people who will leave our business while ensuring that we fully deliver on the cost savings that we committed to.”
In March, a report emerged Unilever was working with advisers to explore a sale to private-equity investors.
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By GlobalDataAt the time, the company declined to comment on whether it was gauging interest from investors.
When Unilever announced its “productivity programme” in March, 7,500 jobs were at risk.
In July, Unilever said the job cuts would include 3,000 to 3,200 mainly office roles in Europe.
“We remain fully on track to deliver the €800m ($843.6m) savings from our productivity programme, which will impact around 7,500 roles globally,” the Unilever spokesperson said today.
Unilever had not responded to Just Food’s request to clarify or confirm the actual numbers put forward in a Reuters report today, based on a conversation with the chair of Unilever’s European Works Council Hermann Soggeberg.
Soggeberg told the news agency that 1,700 jobs will now go in Europe, rather than the 3,200 maximum suggested by Unilever in July.
“We have been negotiating intensively with the company throughout the summer,” Reuters quoted Soggeberg as saying.
He put the number of roles transferring to ice cream at 1,000.
“They are planning for growth in ice cream,” Soggeberg said. “We agreed with Unilever that this process to hiring these people will be synchronised with the job cut programme.”
Unilever, meanwhile, has refused to be drawn on a media report suggesting it is looking to sell some of its Dutch food brands.
Three unnamed sources told global news agency Reuters yesterday (14 November) the Hellmann’s mayonnaise maker is mulling the sale of brands such as Unox and Conimex.
