Unilever plans on 'refreshing' top leaders amid broad restructuring - WSJ

Unilever plans on 'refreshing' top leaders amid broad restructuring - WSJ

Unilever, the consumer goods giant, has announced plans to evaluate and refresh its top 200 leaders as part of a broader restructuring effort under new CEO Fernando Fernandez. The company aims to ensure its leaders are up to the benchmark within the market, with approximately 25% of the top positions being reassessed [1].

Fernandez, who took over in March, stated that the one-by-one assessments will aim to determine if current leaders are "good enough" and if they meet Unilever's high standards. The company expects to fast-track emerging stars and bring in new hires, while also boosting its incentive system [1].

This planned shakeup comes after months of job cuts, with Unilever reducing about 18% of its white-collar workforce in the last 18 months. The company is aiming to improve its results and accountability within the organization [1]. The broader restructuring plan includes a target of 800 million euros ($933.5 million) in savings by the end of 2026, with 650 million euros ($758.2 million) in savings expected by the end of this year [1].

Fernandez also highlighted that Unilever has been an inconsistent performer since the failed takeover bid by Kraft Heinz in 2017. The company lost its focus on volume growth, and the new CEO is pushing to rectify this [1]. Additionally, Unilever is planning to spin off its ice cream business, which includes Magnum and Ben & Jerry’s, by November this year [1].

The restructuring efforts are part of a broader strategy to improve Unilever's performance and position it for future success. The company is also focusing on growth engines like the US and India, with Fernandez stating that India will be crucial for Unilever's future growth [1].

References:
[1] https://www.marketscreener.com/news/unilever-plans-on-refreshing-top-leaders-amid-broad-restructuring-ce7d59dbda88f220