Unilever CEO Fernandez Plans to Replace 25% of Top 200 Managers Amid Restructuring Efforts

Unilever CEO Fernando Fernandez plans to replace 25% of the company's top 200 managers following a performance review. The company has reduced its white-collar workforce by 18% over the past 18 months and aims to stamp out "pockets of mediocrity." Fernandez also announced plans to spin off the ice cream business by November this year and will not deploy funds on deals outside of the US and India.

Unilever Plc, the consumer goods giant, is undergoing a significant restructuring under the leadership of CEO Fernando Fernandez. Fernandez has announced plans to replace 25% of the company's top 200 managers following a performance review, aiming to address what he terms "pockets of mediocrity." This move comes as part of a broader overhaul to improve the company's inconsistent performance and focus on growth engines like the US and India.

Fernandez, who has been at the helm since February, has already reduced the white-collar workforce by 18% over the past 18 months. He described Unilever as a "bloated organization" with an inconsistent performance culture, which has been derailed since the failed 2017 takeover bid by Kraft Heinz Co. [1].

The restructuring plan includes spinning off the ice cream business, which owns Magnum and Ben & Jerry’s, by November this year. Fernandez has also stated that the company will not deploy funds on deals outside the US and India, indicating a focus on these regions as growth engines. "India will be for Unilever what China has been for some of our competitors over the past decade," he said [1].

Unilever's top 200 managers are being benchmarked against the market, with 25% of them expected to be "refreshed." This move is part of a broader restructuring plan announced by former CEO Hein Schumacher. The company has previously stated it would cut 7,500 office-based roles by 2026 [1].

Fernandez's actions align with broader industry trends, as other consumer packaged goods (CPG) companies like Kraft Heinz and PepsiCo are also restructuring to address margin pressures and shifting consumer preferences. Kraft Heinz, for instance, is splitting into Global Taste Elevation and North American Grocery Co., while PepsiCo is facing activist-driven reforms, including refranchising bottling operations and cost cuts [2].

The CPG sector is undergoing a seismic shift, with legacy conglomerates dismantling decades-old structures to adapt to a fragmented, health-conscious market. The priority is operational clarity and agility over scale, with success hinging on execution speed and category-specific innovation [2].

For Unilever, the focus is on improving operational efficiency and aligning with market trends. The company's ability to execute this restructuring plan will be crucial in determining its future performance and investor returns.

References:
[1] https://www.bloomberg.com/news/articles/2025-09-03/unilever-ceo-plans-shakeup-of-top-200-managers-in-overhaul
[2] https://www.ainvest.com/news/kraft-heinz-pepsico-strategic-splits-big-food-shake-2509/