Unilever takes axe to 1,500 jobs in bid to fight off activist investor

UNILEVER is swinging the axe in a sweeping restructure, as under-fire CEO Alan Jope seeks to repair relations with the City and fend off attention from an activist investor.

The consumer goods giant today announced plans to cut 1,500 jobs around the world as it simplifies its corporate structure. A spokesman declined to give details of where job cuts may fall.

Some 15% of seniormanagement roles will be axed and 5% of junior managers will be asked to leave. Unilever employs 149,000 around the world, including 6,000 in the UK and Ireland.

The job cuts are part of an overhaul meant to improve performance. The Dove soap and Marmite ownerhas been criticised by investors for weak growth and plodding decision making.

Today, Unilever said it is abolishing its “matrix” management structure, which sees employees report to multiple bosses. It will streamline the company into five operating divisions: beauty and wellbeing; personal care; home care; nutrition; and ice cream.

Jope said: “Our new organisational model has been developed over the last year and is designed to continue the step-up we are seeing in the performance of our business.

“Moving to five category-focused Business Groups will enable us to be more responsive to consumer and channel trends, with crystal-clear accountability for delivery.

“Growth remains our top priority and these changes will underpin our pursuit of this.”

Unilever first publicly hinted at a possible restructure last February when it announced plans to make the business “future fit”. Jope said last week that the matrix structure was set to be axed as part of a looming overhaul.

While changes have been long in train, the timing will attract attention. Jope is struggling to repair relations with the City after an aborted attempt to buy GlaxoSmithKline’s consumer healthcare business. Investors had concerns about the risks and cost of the potential deal.

In recent days it has emerged that New York activist investor Nelson Peltz has built a position in Unilever’s stock. His intentions are not clear but analysts have speculated he may push Unilever to spin off underperforming brands or even seek a full demerger of the company’s food and refreshments business.

Unilever was down 9p, or 0.2%, to 3935p.