British-Dutch consumer goods giant Unilever has announced plans to reduce its global workforce, starting next month, in a bid to increase profitability. Operating in over 190 countries, including Ethiopia, Unilever employs more than 128,000 people worldwide and produces brands such as Signal, Lifebuoy, OMO, and Knorr.

The decision to downsize follows months of declining profits and an employee base deemed by the company as oversaturated. According to sources, Unilever had signaled its intention to reduce staff nearly six months ago, with layoffs slated to begin in December 2024. In Ethiopia, where Unilever has been active since 2015, the company will cut back administrative roles, reducing each unit’s staff to one or two.

Unilever recently faced scrutiny from campaigners over its Russian operations, leading to a sale of its Russian assets to a local group amid concerns the company’s presence was indirectly supporting the conflict in Ukraine.

In its latest quarterly report, Unilever posted sales of Euro 15.2 billion, down from the previous quarter’s Euro 16 billion. The workforce reduction underscores Unilever's ongoing efforts to adapt to challenging market conditions while striving to enhance profitability across its markets.

Source: Capital Ethiopia