THE WHAT? Unilever has announced plans to cut €1 billion (US$1.12 billion) in costs by the end of 2029 as it restructures its global operations to focus on beauty, personal care and home care following the planned separation of its food business.
THE DETAILS The restructuring will introduce six regional performance units, each led by a president with full profit-and-loss responsibility, with implementation beginning in 2027. Savings will be achieved through organisational simplification, process redesign and technology investment, offsetting an estimated €400 million to €500 million in costs associated with the separation of its food division. Following the planned merger of its food business with McCormick, expected to complete by mid-2027, Unilever will report across three categories: Beauty & Personal Care, Home Care and Other. The company also reaffirmed its medium-term targets of 4–6 percent annual underlying sales growth, including volume growth of at least 2 percent.
THE WHY? The restructuring marks a significant shift in Unilever’s corporate strategy towards a more focused cosmetics, personal care and home care business. Simplifying its operating structure and reducing costs is intended to improve profitability, strengthen regional accountability and free up resources for investment in product innovation, marketing and international expansion.
Source: Reuters
