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Unilever To Cut Thousands Of Jobs Across More Than 100 Countries

As per Unilever, the layoffs will impact management but not production workers. The news follows the company’s failure to acquire GSK consumer health segment.

Unilever To Cut Thousands Of Jobs Across More Than 100 Countries

Unilever, the largest consumer goods company in the globe, shared plans to cut thousands of employees across more than 100 countries. The news follows the company’s failure to acquire GlaxoSmithKline’s (GSK) consumer health segment for $50 billion.

The consumer products corporation headquartered in the United Kingdom employs 149,000 people globally. Its global job-cutting plan is part of a larger restructuring drive to increase operational efficiency.

According to the corporation, the layoffs will impact management but not production workers.

Hindustan Unilever, the British company’s Indian branch, employs 21,000 people in India, comprising 12000 blue-collar workers spread among 31 factories and 15 offices. It is still unclear whether employment cuts would affect the Indian unit.

Unilever was chastised after abandoning ambitions to acquire GSK’s healthcare sector. It had aimed to counteract the sluggishness in its foods segment by gaining a larger share of the personal healthcare industry after the purchase.

GSK said that the offer did not match the value of the division, and Unilever declined to increase the offer. The acquisition, which Unilever quickly abandoned, was going to be the largest ever in the UK. It was unexpected, and would have put Jope under scrutiny.

The entire affair put the business’s management, led by CEO Alan Jope, under the microscope, with investors demanding that the company improve operational efficiency instead of taking on new tasks.

According to Reuters, Nelson Peltz’s activist hedge fund, Trian Partners, has bought an unidentified stake in Unilever. Trian is recognised for proposing operational reforms at its portfolio firms, and its acquisition of Unilever has heightened the need for reorganisation. Peltz is well-known for pushing for reforms at consumer behemoths Procter & Gamble (P&G) and Modelez in the past.

On Monday, it was revealed that activist investor Nelson Peltz, based in New York, had purchased a stake in Unilever.

Mr. Peltz’s hedge fund, Trian Partners has already called for changes at rival consumer products companies Procter & Gamble and Mondelez.

It is unknown how much Trian’s position is, but his move to purchase the stock has thrilled investors, with Unilever shares rising 7.3 percent in London trading.

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