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Marmite maker Unilever to cut thousands of jobs worldwide Marmite maker Unilever to cut 1,500 jobs worldwide
(about 1 hour later)
The consumer goods giant Unilever is set to announce thousands of job cuts this week, the BBC understands. Consumer goods giant Unilever has announced plans to cut 1,500 jobs globally as part of a company-wide reorganisation.
The Marmite and Dove soap maker will slash staff numbers in more than 100 countries, with cuts in the "low thousands" planned, a source said. The Marmite and Dove soap maker said the cuts would hit its management teams but would not affect factory roles.
It comes a week after the firm failed in its bid to buy the consumer health division of GlaxoSmithKline for £50bn.It comes a week after the firm failed in its bid to buy the consumer health division of GlaxoSmithKline for £50bn.
Unilever, which declined to comment on the cuts, faces mounting pressure from investors to accelerate its growth. Unilever is faces mounting pressure from investors to accelerate its growth.
The UK-based firm, which has 149,000 staff worldwide, will make the layoffs as part of a wider restructuring that will see it adopt a more competitive operating model. The UK-based firm, which has 149,000 staff worldwide, is making the layoffs as part of a wider restructuring that will see it adopt a more competitive operating model.
It is not yet clear where the job cuts will fall. The firm employs more than 6,000 people in its operations in the UK and Ireland. The firm employs more than 6,000 people in its operations in the UK and Ireland.
PG Tips maker will not raise £50bn bid for rivalPG Tips maker will not raise £50bn bid for rival
Last week, Unilever sparked anger from some investors when it dropped a short-lived pursuit of GlaxoSmithKline's (GSK) healthcare business.Last week, Unilever sparked anger from some investors when it dropped a short-lived pursuit of GlaxoSmithKline's (GSK) healthcare business.
Unilever had initially said it wanted a bigger slice of the personal healthcare and hygiene market, to offset slow growth in its foods business.Unilever had initially said it wanted a bigger slice of the personal healthcare and hygiene market, to offset slow growth in its foods business.
But GSK, which owns brands such as Sensodyne toothpaste and Panadol painkillers, said the offer "fundamentally undervalued" the division and Unilever has since refused to raise its bid.But GSK, which owns brands such as Sensodyne toothpaste and Panadol painkillers, said the offer "fundamentally undervalued" the division and Unilever has since refused to raise its bid.
The saga has sparked unease about the firm's management under chief executive Alan Jope, with the head of Unilever's 13th biggest investor labelling the GSK bid as a "near death experience".The saga has sparked unease about the firm's management under chief executive Alan Jope, with the head of Unilever's 13th biggest investor labelling the GSK bid as a "near death experience".
Terry Smith, who runs Fundsmith, urged the company to focus on operating performance in its existing businesses "before taking on any more challenges".Terry Smith, who runs Fundsmith, urged the company to focus on operating performance in its existing businesses "before taking on any more challenges".
After the humiliation of having its bids for GSK's consumer healthcare business repeatedly rejected, this is a real "What next?" moment for Unilever.
The answer appears to be to knuckle down and focus on the existing business, trimming out excess fat and attempting to accelerate growth, rather than building new empires.
It is likely to be a more popular approach with leading investors, several of whom were deeply unhappy with the idea of a move into the personal healthcare business.
The fact that activist investor Nelson Peltz has come on board is likely to add extra urgency to the restructuring process.
But that still leaves question marks hanging over chief executive Alan Jope and his team. Can they restore their lost credibility - and do they have anything else up their sleeves?
'The stars are aligning''The stars are aligning'
In a further twist on Monday, it emerged that the New York-based activist investor Nelson Peltz had taken a position in Unilever. On Monday, it emerged that the New York-based activist investor Nelson Peltz had taken a position in Unilever.
Mr Peltz's hedge fund Trian Partners has previously demanded reforms at rival consumer goods firms Procter & Gamble and Mondelez.Mr Peltz's hedge fund Trian Partners has previously demanded reforms at rival consumer goods firms Procter & Gamble and Mondelez.
It is unclear how big Trian's stake is, but his decision to buy the stake has pleased investors, with shares in Unilever jumping by 7.3% in London trade on Monday.It is unclear how big Trian's stake is, but his decision to buy the stake has pleased investors, with shares in Unilever jumping by 7.3% in London trade on Monday.
In a note, analysts at Barclays said Mr Peltz's investment "will not be that much of a surprise to industry specialists".In a note, analysts at Barclays said Mr Peltz's investment "will not be that much of a surprise to industry specialists".
"From Unilever's perspective, the status quo is not an option," they added. "It would seem that the stars are aligning with both Unilever management and an activist pushing for more urgency.""From Unilever's perspective, the status quo is not an option," they added. "It would seem that the stars are aligning with both Unilever management and an activist pushing for more urgency."