The consumer goods company Unilever has imposed a global hiring freeze at all levels with immediate effect. The manufacturer of brands such as Dove and Knorr is reacting to the economic consequences of the Iran War. This emerges from an internal letter that is available to the Reuters news agency.
The stop should last at least three months. “The macroeconomic and geopolitical realities, particularly the Middle East conflict, pose significant challenges for the coming months,” wrote Fabian Garcia, head of the personal care division, to employees last week. The month-long war has disrupted global trade and caused the worst disruption to oil and gas supplies in history.
An austerity program has been running for two years
The hiring freeze is in addition to an austerity program that is already underway. Since 2024, Unilever wants to save around 800 million euros within three years and cut around 7,500 jobs. The British group has been struggling with weak sales figures since the corona pandemic.
He is currently negotiating the sale of his food division to smaller US competitor McCormick. Unilever wants to concentrate on the higher-profit areas of personal care and cosmetics. Just a few months ago, Unilever had it Ice cream manufacturer Magnum Ice Cream Company split off.
Unilever’s workforce has fallen from around 149,000 in 2020 to 96,000 currently. Unilever shares rose 1.1 percent in London on Monday.