Unilever Takes Action to 'Optimize'

Xiaoshidai previously reported that Unilever’s proposed transformation measures are expected to affect approximately 7,500 primarily office-based roles globally, and the total restructuring costs over the next three years are projected to amount to roughly 1.2% of Unilever’s turnover. It should be noted that Unilever has never stated that all 7,500 positions stem from its ice cream business, as the company’s current transformation initiative spans all of its business units. At the time, Ian Meakins, Chairman of Unilever’s Board, said the Board was determined to transform Unilever into a faster-growing, higher-margin enterprise that consistently delivers value for all stakeholders. Enhancing corporate performance and refining the product portfolio were identified as key levers to achieve this goal. Hein Schumacher, Unilever’s CEO, also stated that these changes would help accelerate the company’s growth plans by concentrating its business and resources on global or scalable brands—brands capable of leveraging leading innovation, technology, and go-to-market capabilities within complementary operating models. He added that streamlining the product portfolio and improving productivity would further unlock Unilever’s business potential, supporting its ambition to position itself as the world’s leading consumer goods company—delivering strong, sustainable growth and higher profitability. “We are committed to implementing our productivity program in consultation with employee representatives, and we respect and care deeply for those affected,” Schumacher said. According to the company, following the spin-off of its ice cream business, Unilever will become a simpler, more focused organization, structured into four operating groups: Beauty & Wellbeing, Personal Care, Home Care, and Nutrition. Furthermore, Unilever will continue optimizing the product portfolios within these four remaining business groups—and fully leverage brands with global influence or significant expansion potential. Bloomberg reported today that Schumacher’s announced productivity plan aims to drive Unilever’s growth and profit improvement, while addressing the lingering consequences of overexpansion, missed opportunities, and failed acquisitions. Appointed after activist investor Nelson Peltz acquired a stake in Unilever, Schumacher also intends to spin off Unilever’s ice cream business as part of a sweeping strategy to reverse years of underperformance. As news of the planned ice cream divestiture emerged, Xiaoshidai observed that Schumacher had earlier assigned a “safe hand” to Unilever’s sole remaining food business—the Nutrition division. This division includes well-known brands such as Knorr, Hellmann’s, and The Vegetarian Butcher, generating full-year 2023 revenue of €13.2 billion (approximately RMB 100.782 billion). Schumacher emphasized that Unilever would pursue a leaner, clearer integration of its food business—but affirmed unequivocally that food would remain an integral part of Unilever’s portfolio. He noted that seasoning brands and culinary solutions businesses have driven both Unilever’s margins and growth, and that the Nutrition business is relatively insulated from private-label competition. He reiterated that a “demerger” of the ice cream business remains the most likely path for its separation. “This decision stems from our strategic assessment—we have not engaged with any parties, nor held discussions with so-called buyers.”

Unilever’s ‘Epic’ Transformation

Meanwhile, Unilever is doubling down on culture and emotion—actively embracing sports, music, and pop culture to create moments that forge emotional resonance with consumers. In November 2025, Rexona became the official sponsor of both the FIFA World Cup and the UEFA European Championship, leveraging content-driven strategies to amplify sports event coverage. The brand launched ‘Locker Room’—a 24/7 content creation hub designed to sustain Rexona’s relevance and visibility during major sporting events: amplifying voices of brand ambassadors, sharing fan perspectives, and collaborating with content creators. During summer sporting events, the team produced over 570 pieces of content, generating more than 251,000 interactions and 56.3 million impressions—an average interaction rate increase of 112% year-on-year. Additionally, Dove sponsored Charli XCX’s ‘Brat’ tour and promoted its antiperspirant products at music festivals—deeply embedding the product within youth-oriented, trend-driven lifestyle contexts. On April 8, K18—a Unilever-owned bioactive haircare brand—announced the appointment of Kleo Mack, formerly of ‘viral’ beauty brands like Glossier, as its Chief Marketing Officer. Mack will lead brand storytelling and communication, championing a ‘science-first’ brand philosophy and carefully curating fewer—but more resonant—‘brand moments.’ After divesting underperforming brands—including Kate Somerville and REN Clean Skincare—Unilever is now channeling resources into 23 key beauty and personal care ‘core brands,’ driving a major strategic transformation. Market reactions to Unilever’s transformation have been sharply divided. One camp views this strategic pivot as fundamentally short-termist and ‘opportunistic.’ It is widely understood that the biggest force behind this overhaul—from organizational restructuring and business divestitures to strategic realignment—is Nelson Peltz, Unilever’s activist shareholder. In 2022, Peltz’s Trian Fund aggressively acquired Unilever shares and secured board representation. He argued that Unilever’s untapped potential could only be unlocked through large-scale structural streamlining. Indeed, ever since Peltz’s stake disclosure, market calls for Unilever to spin off its food business have grown increasingly vocal. An industry insider analyzed: “Unilever isn’t spinning off its food business because it’s unprofitable—but because it drags down the company’s P/E ratio. In simple terms, it doesn’t deliver short-term ‘windfall profits.’ Today’s CEO acts like a ‘hired gun’ for short-term investors; blindly pursuing short-term gains risks erasing forever the legacy of Unilever as a diversified FMCG giant.” Others question: “Can Unilever’s current organizational architecture sustain such an ambitious transformation?” Analysts point out that Unilever’s traditional model—as a comprehensive FMCG conglomerate—is rooted in decades of accumulated systems and processes. Yet a full-fledged transition into a beauty-focused company—one competing head-to-head with L’Oréal, Estée Lauder, or Procter & Gamble—requires entirely different corporate competencies. Whether Unilever’s existing organizational structure and capability base can support such a radical strategic leap remains an open question.

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