By Richa Naidu LONDON, March 30 (Reuters) - Dove soap maker Unilever has implemented a global hiring freeze "at all levels" that will last at least three months, citing the effects of the widening
Exclusive-Unilever imposes global hiring freeze, citing Middle East war effects, memo says
Unilever's Response to Middle East Conflict and Global Economic Challenges
By Richa Naidu
Immediate Hiring Freeze Announced
LONDON, March 30 (Reuters) - Dove soap maker Unilever has implemented a global hiring freeze "at all levels" that will last at least three months, citing the effects of the widening conflict in the Middle East, according to a memo seen by Reuters.
In the memo, sent to staff late last week and previously unreported, Unilever said the freeze would take effect immediately and was made with an eye on the "significant challenges" from the month-old Iran war.
Impact of Iran War on Global Businesses
Firms globally from airlines to retail are scrambling to buttress themselves from the effects of the Iran war, which has snarled global trade flows and resulted in the worst-ever disruption of oil-and-gas supplies in history. The rapid surge in energy costs is already surfacing in other markets, slowing production in industries like chemicals and plastics.
Unilever Leadership's Statement
"Macro economic and geopolitical realities, especially in the Middle East conflict... bring some significant challenges for the coming few months," Fabian Garcia, head of Unilever's personal care business, wrote in the memo sent to staff.
"With this in mind, the Unilever Leadership Executive team has agreed a global recruitment freeze at all levels. This will be effective immediately and last for a minimum of three months."
Operational and Strategic Adjustments
The London-based consumer products giant owns some of the world's most prominent brands. While it produces most of its goods where it sells them, it buys chemicals, food, packaging and other raw materials that are energy-intensive to create.
Unilever, in a statement, said that due to the "uncertain external environment, we have decided to put in place a temporary pause on our recruitment," adding that it will "always adjust our plans as necessary."
Existing Cost-Cutting Initiatives
UNILEVER WAS ALREADY COST-CUTTING
The freeze comes on top of an existing cost-cutting program Unilever has had in place since 2024, meant to save around 800 million euros ($916.72 million) in costs over the next three years. The changes Unilever proposed then were expected to affect around 7,500 jobs globally, mostly office-based.
The firm's current headcount of 96,000 is down from the roughly 149,000 people it employed in 2020.
Sales Volumes and Strategic Moves
The company has struggled to grow sales volumes across its businesses in the wake of the Covid-19 pandemic. It is now in talks to sell its foods business to smaller rival McCormick & Company, it said on March 20.
Potential Major Shake-Up Under New CEO
Under the proposed combination, which would mark a major shake-up under CEO Fernando Fernandez, the British group's shareholders would likely keep a majority stake in the new entity, Reuters reported late last week.
Shares of Unilever rose 1.1% in London trading Monday.
($1 = 0.8727 euros)
(Reporting by Richa Naidu; Editing by Adam Jourdan and XX)
