Unilever plans to axe 25,000 jobs worldwide
By Anthony Deutsch
ROTTERDAM: Anglo-Dutch consumer products heavyweight Unilever plans to
eliminate 25,000 jobs, or about 10 per cent of its global workforce, as part
of a sweeping restructuring announced on Tuesday.
The company behind the brands Dove soap, Lipton tea, Breyer's ice cream and
Close-Up toothpaste made the announcement as it released an earnings report
that showed a 5 per cent drop in net profit for 1999.
Unilever said job cuts will be made over the next five years, mainly in
Europe and the Americas, as it closes 100 of its 250 production sites and
regroups manufacturing operations into regional networks.
Unilever said the restructuring would cost an estimated $ 5 billion and will
eventually cut annual costs by $ 1.6 billion.
Chairman Antony Burgmans of the company's Dutch arm said it was too early to
name the countries where job cuts will be.
"Unilever, as can be expected, will take the utmost care to implement these
changes in close consultation with unions to minimise the personal impact,"
he told a news conference at its Dutch headquarters.
The company said in a statement that businesses which fail to meet
performance targets will be sold or reorganised. Fragrance and cosmetics
unit Elizabeth Arden and the European bakery operations are under review,
Burgmans said.
Unilever profit slipped to 6.14 billion guilders, or $ 2.97 billion, in
1999, down from 6.49 billion guilders in 1998. Sales rose 2 per cent to 90.9
billion guilders, or $ 43.7 billion, last year compared to 92.39 billion
guilders in 1998.
Late last year, Unilever disclosed plans to focus on just 400 of its current
1,800 brands. On Tuesday, it said it will invest $ 1.5 billion to market
that smaller product line- up over the next five years.
Burgmans said he expects net EPS to grow by between 8 per cent and 10 per
cent, before exceptional items, in 2000. He cited improved conditions in
emerging markets, western Europe and North America, as the driving forces
behind the growth.
The company said it will invest $ 200 million this year to expand its
Internet business activities, and would roll out a global Internet sales
system over the next two years. More investment in e-business could be
expected beyond the year 2000, it added.
Unilever employs about 250,000 people worldwide.(AP)
For reprint rights: Times Syndication Service
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