Unilever Imposes Global Hiring Freeze, Citing West Asia War Effects
London : Pigeon soap maker Unilever has imposed a global hiring freeze “at all levels” that will last at least three months, citing the effects of the widening conflict in the Middle East, according to a memo seen by Reuters.
In a previously unreported memo sent to staff late last week, Unilever said the freeze would take effect immediately and was made taking into account the “significant challenges” of the month-long Iran war.
Companies globally, from airlines to retailers, are trying to recover from the effects of the Iran war, which has disrupted global trade flows and led to the worst disruption in oil and gas supplies in history. Rapid increases in energy costs are already surfacing in other markets, and production in sectors such as chemicals and plastics is slowing.
“Macroeconomic and geopolitical realities, particularly the conflict in the Middle East… present some significant challenges for the next few months,” Fabian Garcia, president of Unilever’s personal care division, wrote in a memo to staff.
“With this in mind, the Unilever Leadership Executive team has agreed a global hiring freeze at all levels. This will take effect immediately and last for at least three months.”
The London-based consumer products giant owns some of the world’s most prominent brands. While it produces most of its goods where it sells, it buys chemicals, food, packaging and other raw materials that are energy-intensive to create.
Unilever said in a statement that “due to the uncertain external environment, we have decided to implement a temporary pause in our hiring,” adding that it would “always adjust our plans as necessary.”
UNILEVER WAS ALREADY REDUCING COSTS
The freeze comes on top of Unilever’s existing cost-cutting program, which has been in place since 2024 and aims to deliver cost savings of around 800 million euros ($916.72 million) over the next three years. Unilever’s proposed changes were expected to affect approximately 7,500 jobs worldwide, mostly office-based.
The firm’s current headcount of 96,000 employees is down from the approximately 149,000 people it employed in 2020.
The company had difficulty increasing sales volumes across all its businesses following the Covid-19 outbreak. The company is in talks to sell its food business to smaller rival McCormick & Company, it said March 20.
Under the proposed merger, which would mark a major change under CEO Fernando Fernandez, the British group’s shareholders would likely retain a majority stake in the new entity, Reuters reported late last week.
Unilever’s shares rose 1.1% in trading in London on Monday.
