Hindustan Unilever (HUL) will closely assess global initiatives of Unilever under the productivity programme and evaluate what works best for our business and its people as its parent recently told its employees that it will cut a third of its office-based jobs in Europe by the end of 2025.
“We will closely assess the global initiatives of Unilever under the productivity programme and evaluate what works best for our business and our people,” HUL told Business Standard in a statement.
Click here to connect with us on WhatsApp
It also added, “In HUL, we have been continuously transforming to unlock productivity. For instance, we have a very robust cost savings programme called Symphony that we have been driving for many years. Through an end-to-end focus across all lines of the P&L (profit and loss), we have been generating gross savings of around 6 per cent of turnover every year.”
In FY24, its turnover stood at Rs 59,579 crore.
In March, Unilever announced the launch of a comprehensive productivity programme to drive focus and growth through a leaner and more accountable organisation. Unilever has started the consultation process in Europe with employees who may be impacted by the proposed changes.
The Financial Times reported last week that the global consumer major’s new CEO, Hein Schumacher, has planned this move to boost growth at the company. This move will cause 3,200 roles to be cut across Europe and is part of the cost savings programme announced in March, which included as many as 7,500 jobs.
Earlier this year, Unilever also announced that it is planning to separate the ice-cream business in a move to accelerate growth as it intends to simplify Unilever’s portfolio and also save costs.
It had then said in a release, “Following separation, Unilever will become a simpler, more focused company, operating four business groups across beauty and wellbeing, personal care, home care and nutrition.”
During its annual general meeting held last month, HUL’s non-executive chairman, Nitin Paranjpe, told shareholders that the team in India will assess the situation and have discussions with the board. And the board will form a view on what is in the best interest of the company.
“We will have discussions with the Unilever global team and arrive at a decision, which will be in the best interest of each as well. That decision is yet to be made,” he said while answering questions of shareholders.