Unilever has pledged to cut €1bn in costs in a major restructure following the carveout of its foods division.
The consumer giant said on Tuesday it would target “stranded costs” from the spin-out of its food division, which includes Hellmann’s and Marmite, to McCormick.
The restructure will address the €400m to €500m of stranded costs from the transaction, with the remaining €500m to €600m of savings from the restructure going to the company’s bottom line. Savings will be achieved by 2029, Unilever said on Tuesday.
A simultaneous redesign of of the organisation will see it reshaped into five regional units led by presidents with full accountability. The company will report to investors across three categories: beauty & personal care, home care, and other.
“Our new operating model will combine a centralised global strategy with excellence in local execution, aiming for portfolio convergence and simplification, leveraging our market leading brands and premium digital disruptors,” said CEO Fernando Fernandez.
“We are building from a position of strength, and our priority is to deliver sustained, competitive volume-led growth and consistent hard currency earnings expansion.”
Unilever expects to report 4%-6% underlying sales growth in 2027, from volume growth of at least 2%.
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