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27 January 2022
Unilever shifts to a category focus
Brand models, architecture
Unilever has announced that it is to move away from a matrix structure to organise around five distinct business groups.
What are the new groups?
Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream: each will be fully responsible and accountable for their strategy, growth, and profit delivery globally.
“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,” said CEO Alan Jope. “Growth remains our top priority and these changes will underpin our pursuit of this,” he added.
Unilever says the changes will mean a 15% reduction in senior management roles and a 5% cut in more junior management roles – around 1,500 jobs in total globally. Factory teams won’t be affected.
What it means
The widespread assumption is that the moves are a response to recent demands by investors seeking a better performance. The creation of the separate divisions opens up the option for sell-offs in future of slower-growing operations, with ice cream likely to be first in the queue.