Hindustan Unilever job cuts may go up to 15%
Indian consumer goods company, Hindustan Unilever may have job cuts and lay offs by the end of April amounting to 10-15%, a report by The Economic Times said on Friday.
The shedding of jobs is a part of the Dutch parent’s global mandate to reduce costs across markets and its decision to exit the margarine and butter spreads business, the report added.
HUL currently employs 18,000 people in India including more than 1,500 managers, as per the data of its 2015-16 annual report.
On Thursday HUL’s parent company announced that it would increase its margin targets and review the dual structure of the Anglo-Dutch company which exists as two separate entities in the UK and the Netherlands.
The decision to enter the margarine market that was taken in 2009 to strenghthen the company’s food portfolio in line with global markets was put under the microscope in March.
HUL’s business of some of its food brands in the butter and margarine segment amounted to $7.4 billion, a report by Small Investor said on March 29.
The exit from butter and margarine spreads segment is expected to trim the company's food division which contributed 40% to its $56.1 billion overall turnover, the report by Small Investor added.
HUL will accelerate its cost-saving plan and target a 20% underlying operating margin, before restructuring, by 2020, the ET report quoted the company statement.
The company’s Global CEO, Paul Polman, the report added, was committed to the board and his strategy to cut costs sharply to protect profitability.
It aimed to prove that it can deliver growth following its rejection of a takeover attempt by rival Kraft Heinz for 115 billion pounds in February, the report added.