Unilever PLC (NYSE: UL), has opted to cut 1,500 management jobs worldwide as the company faces backlash from shareholders to boost growth. The change comes as the company shifts to a new organizational model that’s been in the works for the last couple of years. The firm currently employs over 149,000 people worldwide.
“Our new organizational 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,” said chief executive Alan Jope.
“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.”
The multinational consumer goods company has 80 brands including Ben & Jerry’s and Dove. According to the company, Ben & Jerry’s will continue to have its own board, a decision agreed upon when Unilever first acquired the brand in 2000.
The terminations were disclosed just a week after the company announced that it had made three failed bids to acquire Pharmaceutical giant GlaxoSmith Kline’s. Unilever revealed last Thursday that it would not be increasing its last rejected offer of USD68.4 Billion.
Unilever shares rose 7% on Monday in London following news that activist investor Nelson Peltz is growing its stake in the company.