Unilever’s Strategic Shake-Up Gains Momentum Under New CEO Hein Schumacher
Unilever’s turnaround strategy under CEO Hein Schumacher is showing early signs of traction, as the FMCG giant intensifies efforts to streamline operations, boost innovation, and rebuild market share across underperforming categories.
Schumacher, who took the helm in July 2023, has launched a sweeping cost-cutting programme expected to save around €800 million over the next three years. This initiative includes 7,500 job reductions globally—primarily in office-based roles—and aims to simplify the business structure while enhancing brand impact.
Central to these reforms is the spin-off of Unilever’s ice cream division, home to brands like Magnum and Ben & Jerry’s. The business will be separated into a standalone entity by the end of 2025, reflecting Unilever’s sharpened focus on its core segments such as personal care, home care, nutrition, and beauty & wellbeing.
“We’re taking decisive action to drive consistency in execution, improve productivity, and focus efforts behind fewer, stronger brands,” Schumacher told investors. The strategy intends to reduce complexity and improve speed-to-market for innovations—an area where Unilever has lagged behind competitors including Procter & Gamble and Nestlé.
While the company reported a 4.5% increase in underlying sales in Q1 2024, volume growth remained flat, highlighting ongoing pressure from inflation and competitive dynamics, particularly in North America. Notably, Unilever’s key personal care category—home to Dove and Rexona—recorded a modest 2.3% increase in volume. But the nutrition and ice cream segments delivered negative volume growth, underscoring the rationale for structural change.
Schumacher is also addressing brand efficiency. Unilever will streamline its portfolio, cutting about 20% of SKUs, allowing greater focus on high-performing core lines. The company has also committed to investing more heavily in product superiority and marketing, aiming to reclaim lost ground in saturated and premium markets.
Industry observers will be watching closely as Unilever navigates this bold pivot. While early indicators suggest improving focus and operational discipline, sustained volume gains remain a critical metric for assessing long-term success in a fiercely competitive global FMCG landscape.