Written on: February 1, 2022 by SprayTM
Unilever announced changes to its organizational model to make it a simpler, more category-focused business.
The company will move away from its current matrix structure and will be organized around five distinct Business Groups: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream. Each Business Group will be fully responsible and accountable for their strategy, growth and profit delivery globally.
Alan Jope, CEO Unilever, explained, “Our new organisational model has been developed over the last year and is designed to continue the step-up we are seeing in the performance of our business. Moving to five category-focused Business Groups will enable us to be more responsive to consumer and channel trends, with crystal-clear accountability for delivery. Growth remains our top priority and these changes will underpin our pursuit of this.”
To enable Unilever to benefit from its scale and global capabilities, the five Business Groups will be supported by Unilever Business Operations, which will provide the technology, systems, and processes to drive operational excellence across the business. A lean Unilever Corporate Centre will continue to set Unilever’s overall strategy.
As a result of the new set-up, Unilever is making changes to its leadership team.
These appointments are effective from April 1, 2022.
Sunny Jain, President Beauty & Personal Care, has decided to leave Unilever to set up an investment fund in technology megatrends. Other members of the Unilever Leadership Executive (ULE) will remain in role, including Sanjiv Mehta who will retain executive leadership of Hindustan Unilever.
The proposed new organisation model will result in a reduction in senior management roles of around 15% and more junior management roles by 5%, equivalent to around 1,500 roles globally. Changes will be subject to consultation. The company does not expect factory teams to be impacted by these changes.
All costs related to setting up the new organization will be managed within existing restructuring investment plans.