Unilever has announced initiative to expedite its Growth Action Plan (GAP) by splitting its Ice Cream division and initiating a significant productivity program.
The division of Ice Cream will aid Unilever’s leadership in expediting the execution of its GAP, introduced in October 2023.
This strategy aims to streamline operations, enhance productivity, and foster a performance-driven culture, ultimately driving more robust and sustained top-line growth.
In addition, Unilever will continue to optimise its portfolio within the four Business Groups towards higher growth spaces and through brands with global reach or significant potential to scale.
In addition to the portfolio changes, Unilever intends to launch a comprehensive productivity programme, driving focus and faster growth through a leaner and more accountable organisation, enabled by investment in technology.
The productivity programme is anticipated to deliver total cost savings of around €800 million over the next three years, more than offsetting estimated operational dis-synergies from the separation of Ice Cream.
The planned adjustments are projected to affect approximately 7,500 primarily office-based positions worldwide, with the total restructuring expenses now estimated to amount to around 1.2% of Group turnover for the upcoming three years, an increase from the previously communicated figure of around 1%.
Hein Schumacher, CEO of Unilever said, “Under the Growth Action Plan we have committed to do fewer things, better, and with greater impact. The changes we are announcing today will help us accelerate that plan, focusing our business and our resources on global or scalable brands where we can apply our leading innovation, technology and go-to-market capabilities across complementary operating models.
“Simplifying our portfolio and driving greater productivity will allow us to further unlock the potential of this business, supporting our ambition to position Unilever as a world-leading consumer goods company delivering strong, sustainable growth and enhanced profitability”, Hein Schumacher added.
Hein further said, “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.”
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