Unilever freezes global hiring as US-Iran war disrupts global trade
What's the story
Unilever, the multinational consumer goods company with over 400 brands, has announced a global hiring freeze. The move affects all levels of employment and is expected to last at least three months. The decision comes in light of the ongoing US-Iran war's impact on global trade flows and oil-and-gas supply chains.
Strategic pause
Fabian Garcia's memo highlights challenges posed by geopolitical tensions
Fabian Garcia, head of Unilever's personal care business, said in a memo that "Macro economic and geopolitical realities, especially in the Middle East conflict... bring some significant challenges for the coming few months." He added that these factors have prompted the Unilever Leadership Executive team to agree on a global recruitment freeze. The decision is effective immediately and will last for at least three months.
Cost-saving measures
Existing cost-cutting program and reduction in workforce
The hiring freeze comes on top of an existing cost-cutting program that Unilever has had in place since 2024. The initiative is expected to save around €800 million ($916.7 million) in costs over three years and affect some 7,500 jobs globally, mostly office-based. The company's current headcount of 96,000 is a significant drop from the roughly 149,000 people it employed in 2020.
Official response
Unilever clarifies that hiring pause is temporary
In an official statement, Unilever said that due to the "uncertain external environment," it has decided to implement a temporary pause on recruitment. The company clarified that this decision is not permanent and they will "always adjust our plans as necessary."