Unilever: Reading between the lines

Unilever, based in London and Rotterdam, is planning to shed 20,000 workers worldwide in restructuring over the next 4 years.

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The workforce reduction was announced as Unilever reported a 16% increase in second-quarter net profit, mostly due to strong consumer demand.
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Net profit came to $1.56 billion, up from $1.35 billon, on sales of $14.4 billion, up from $14.1 billion.
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Wood said Unilever's decision to sell the U.S. laundry operations was as important as the earnings themselves, because the company planned to save $2.1 billion by "clustering regional structures ... reducing supply chain costs," he said.
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"Both the portfolio change and more aggressive cost-saving plans should be well-received by investors, perhaps giving the first sign of a more aggressive impact from Cescau, who became the company's first sole chief executive in April 2005 when it combined its British and Dutch boards.

Unilever said the 20,000 jobs to be cut were being eliminated as part of the restructuring programs.

"It's too early to say in what regions and when those jobs will be reduced," spokesman Gerbert van Genderen Stort said.
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Not bad going, announcing huge job losses at the same time you announce improved sales and a better than 10% net profit globally.

"Thanks for doing a great job. Keep up the good work, everyone!"

That comment about "clustering regional structures" may be the most important one for the local Unilever company in Petone, who likely won't be affected, but "you can never say never".

Reading between the lines, they are dumping 20,000 jobs, but "it's too soon to say" where or when. Understandable. You don't want workers knowing years in advance they're for the chop. Tell them much closer to the day and let the doubt over the next four years keep them hopeful and compliant.

I'd be looking at retraining sooner rather than not if I worked there: Small plant, far from markets and no tariff barriers. The competition is bring their stuff in from Thailand. Maybe if the physical plant at the Petone factory is relatively new, they may run it down before closing the place later. If it's old, they won't be re-investing.

Still more daily household goods we will have to import that we used to make here? We'll find out soon enough.