Unilever PLC (LSE:ULVR) has made its big announcement about the restructuring of its organisation.
The lumbering Anglo-Dutch consumer goods behemoth said I will move away from its current matrix structure and reorganise around five distinct business groups: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream.
“Moving to five category-focused business groups will enable us to be more responsive to consumer and channel trends, with crystal-clear accountability for delivery. Growth remains our top priority and these changes will underpin our pursuit of this," said Alan Jope, the chief executive officer of Unilever who has come under increasing pressure to ginger up the group’s performance after a series of missteps, some of which were before he took the role.
The five business groups will be supported by a business operations division that will provide the technology, systems, and processes used by the other parts of the business.
The shake-up has provided the FTSE 100 giant the opportunity to thin out management ranks, with the group saying around 1,500 jobs will go as a result of a reduction in senior management roles of around 15% and a 5% or so cut to more junior management roles. The consumer goods giant employs around 150,000 people worldwide.
Unilever hinted at big changes afoot on 17 January when news broke of its numerous approaches to buy the consumer healthcare business jointly owned by GlaxoSmithKline PLC (LSE:GSK) (GSK) and Pfizer Inc (NYSE:PFE).
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