Unilever Layoff 7,500 Employees Worldwide To Save Cost, Spins Off Ice Cream Business
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22 March 2024 13:26 WIB
TEMPO.CO, Jakarta - Multinational company Unilever revealed the reasons for laying off 7,500 employees worldwide.
In its official explanation, Unilever stated that the layoffs were conducted for cost savings. Unilever also spins off its ice cream business such as Magnum and Ben&Jerry's which is believed to be able to boost the company's profits despite the impact of mass layoffs.
"The Board is determined to transform Unilever into a higher-growth, higher-margin business that will deliver consistently for all stakeholders," said Chair of Unilever Plc, Ian Meakins, as written on the company's official website, Tuesday, March 19, 2024.
Meakins believes separating the ice cream business can help create a simpler, more focused, and higher-performing Unilever. "It will also create a world-leading ice cream business, with strong growth prospects and an exciting future as a standalone business," he said.
Meanwhile, according to Unilever CEO, Hein Schumacher, the spin off of the ice cream business unit was carried out based on the company's growth action plan.
Schumacher also expressed his commitment to pay attention to the workers affected by layoffs due to Unilever's move. "We are committed to carrying out our productivity programme in consultation with employee representatives, and with respect and care for those of our people who are impacted," he said.
Reporting from Reuters, Unilever estimates that the spin off will result in cost savings of around €800 million or the equivalent of US$869 million over the next three years.
In addition to cutting about 5.9 percent of the total number of Unilever workers worldwide, which now totals around 128,000 people, Unilever's restructuring costs are estimated to reach 1.2 percent of total sales turnover during that period.
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