Unilever Plc plans eliminate thousands of management positions to speed up decision-making after activist investor Nelson Peltz took a stake in the consumer goods giant, people familiar with the matter said.
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The measure would remove numerous regional and divisional roles that CEO Alan Jope says have slowed innovation, said the people, who asked to remain anonymous discussing private matters.
The job cuts are likely to total a few thousand, they said. The company employs about 150,000 people Worldwide.
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The actions fell as much as 0.8% in London on Tuesday morning. A Unilever representative declined to comment.
The news, which could be announced this week, comes at a crucial time for Jope, who took office three years ago and is under increasing pressure to chart a new course as the company’s share price falls below of his rivals.
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Unilever dropped out last week your search for GlaxoSmithKline Plc’s consumer healthcare business after the drugmaker rejected his proposals and investors dismissed the offer. Fund manager Terry Smith called the offering a “near-death experience.” Just days earlier, he had urged Unilever to focus more on fixing its own business than seeking to promote the sustainability ethos of brands like Hellmann’s mayonnaise.
In recent days, news has emerged that billionaire Peltz’s Trian Fund Management has acquired a major stake. The exact size and its intentions remain unclear, but Unilever shares rose 7.3% in London on Monday, its biggest gain in 18 months, on optimism the hedge fund would drive significant change.
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Following reports of the holding, analysts at Sanford C. Bernstein led by Bruno Monteyne wrote to investors speculating that lmorale had sunk into low-growth divisions and that “every talented person in Food and Beverage should have already updated their LinkedIn profile.” Monteyne had anticipated that Unilever might be Trian’s next target in August, when Peltz stepped down from the Procter & Gamble Co. board after campaigning there.
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