Unilever Plc - Unemployment numbers in Nigeria is expected to soar at the end of the first quarter (Q1) of 2024 as Unilever Plc, on Tuesday, announced plans to cut around 7,500 jobs globally as part of an overhaul aimed at saving around $869 million (£684 million) over the next three years. This decision is likely to hit its subsidiaries, including Nigeria, Africa’s biggest economy whose unemployment rate currently stands at 5 per cent.
In a statement on Tuesday, Unilever said the jobs affected by the restructuring would be largely office-based. It said the move came as it intends to invest in technology to boost productivity and save cost. Unilever said staff will be consulted about the job cuts, which will happen within the next two years.
Speaking on the changes, Hein Schumacher, chief executive officer of Unilever, said it would help speed up the plan. “Under the growth action plan, we have committed to do fewer things better, and with greater impact,” Schumacher said.
“The changes we are announcing today will help us accelerate that plan.” He said the firm is committed to carrying out its productivity programme in consultation with employee representatives, and with respect and care for those who are impacted.
The group also revealed that it will split off its ice cream business, noting that the business which is home to brands like Wall’s Magnum and Ben&Jerry’s and accounting for 16 per cent of overall sales, would be better as a standalone business.
On the back of the company’s decision, its share price on the floor of the Nigerian Exchange Limited (NGX) fell by 3.13 per cent to close yesterday’s proceedings at N15.50 per share.
It will be recalled that in March 2023, it’s subsidiary, Unilever Nigeria announced the exit of its home Care and skin cleansing from Nigeria.
According to the manufacturer of famous brands such as Omo, Sunlight and Lux; the changes in its business led to the decision to fold up operations in the country.
Meanwhile, several companies have also announced massive layoffs, signalling the continuation of a trend that commenced last year over profitability concerns.
On January 25, Microsoft said it would sack around 1,900 of its total gaming workforce, while Google plans to cut hundreds of employees across its global advertising and sales teams.
The development came after it laid off “hundreds” more employees on January 10, across several divisions, including its engineering and hardware teams, as well as employees developing its voice-operated virtual assistant, Google Assistant.
Paypal on January 30, said 2,500 of it’s total workforce will be fired within the year to save costs, while United Parcel Service (UPS) announced plans to cut about 12,000 jobs to save $1 billion in costs.
Source: Daily Sun