Hindustan Unilever is planning to cut 10%-15% of jobs to protect profitability
Advertisement
India’s largest consumer goods company is planning to hand out pink slips in a bid to reduce costs.
The Hindustan Unilever (HUL) is mulling over cutting jobs by 10-15% as its Dutch parent wants to reduce costs across markets.
However, the exact number will be known by the end of April only. In India, HUL employs around 18,000 people across factories and offices.
Unilever saidjob cuts come after they want to focus on increasing its margin targets.
Global CEO Paul Polman committed to the board his strategy to cut costs sharply to protect profitability as it aims to prove that it can deliver growth following its rejection of a takeover attempt by rival Kraft Heinz for 115 billion pounds in February.
"Unilever is conducting a comprehensive review of options available to accelerate delivery of value for the benefit of their shareholders. The results of the review are expected later this month," an HUL spokesperson told ET.
HUL has a five-level management structure, with the CEO at the top. Level four consists of vice presidents, while general managers are at level three. Assistant managers and junior managers or frontline executives make up the remaining two levels.
"With GST implementation, there will be reduction in warehouses and supporting infrastructure, resulting in some job losses. But India is still one of the better-performing markets for Unilever and the restructuring will not be as severe as in other markets," Abneesh Roy, senior vice president at Edelweiss Financial Services, told ET.
With annual net sales exceeding Rs 32,400 crore, HUL contributes about 14% of the parent's emerging markets business, which accounts for about 57% of its total sales.
Advertisement
The Hindustan Unilever (HUL) is mulling over cutting jobs by 10-15% as its Dutch parent wants to reduce costs across markets.
However, the exact number will be known by the end of April only. In India, HUL employs around 18,000 people across factories and offices.
Unilever said
Global CEO Paul Polman committed to the board his strategy to cut costs sharply to protect profitability as it aims to prove that it can deliver growth following its rejection of a takeover attempt by rival Kraft Heinz for 115 billion pounds in February.
Advertisement
HUL has a five-level management structure, with the CEO at the top. Level four consists of vice presidents, while general managers are at level three. Assistant managers and junior managers or frontline executives make up the remaining two levels.
"With GST implementation, there will be reduction in warehouses and supporting infrastructure, resulting in some job losses. But India is still one of the better-performing markets for Unilever and the restructuring will not be as severe as in other markets," Abneesh Roy, senior vice president at Edelweiss Financial Services, told ET.
With annual net sales exceeding Rs 32,400 crore, HUL contributes about 14% of the parent's emerging markets business, which accounts for about 57% of its total sales.
Advertisement
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit
- Unemployment among Indian youth is high, but it is transient: RBI MPC member
- Private Equity Investments
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market