Unilever imposes global hiring freeze, citing Middle East war effects: Report

Dove soap maker Unilever has implemented a global hiring freeze "at all levels" that will last at least three months, citing ‌the effects of the widening conflict in the Middle East, according to a memo seen by Reuters.

 

In the memo, sent to staff late last week and previously unreported, Unilever said the freeze would take effect immediately and was made with an ​eye on the "significant challenges" from the month-old Iran war.

 

Firms globally from airlines to retail are scrambling to buttress themselves ​from the effects of the Iran war, which has snarled global trade flows and ⁠resulted in the worst-ever disruption of oil-and-gas supplies in history. The rapid surge in energy costs is already ​surfacing in other markets, slowing production in industries like chemicals and plastics.

 

"Macro economic and geopolitical realities, especially in the Middle ​East conflict... bring some significant challenges for the coming few months," Fabian Garcia, head of Unilever's personal care business, wrote in the memo sent to staff.

 

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"With this in mind, the Unilever Leadership Executive team has agreed a global recruitment freeze at ​all levels. This will be effective immediately and last for a minimum of three months."

 

The London-based consumer products ​giant owns some of the world's most prominent brands. While it produces most of its goods where it sells them, ‌it buys ⁠chemicals, food, packaging and other raw materials that are energy-intensive to create.

 

Unilever, in a statement, said that due to the "uncertain external environment, we have decided to put in place a temporary pause on our recruitment," adding that it will "always adjust our plans as necessary."

 

Unilever was already cost-cutting

 

The freeze comes on top of an existing ​cost-cutting program Unilever has had ​in place since 2024, ⁠meant to save around 800 million euros ($916.72 million) in costs over the next three years. The changes Unilever proposed then were expected to affect around 7,500 jobs ​globally, mostly office-based.

 

The firm's current headcount of 96,000 is down from the roughly ​149,000 people it ⁠employed in 2020.

 

The company has struggled to grow sales volumes across its businesses in the wake of the Covid-19 pandemic. It is now in talks to sell its foods business to smaller rival McCormick & Company (MKC.N), it said ⁠on March ​20.

 

Under the proposed combination, which would mark a major shake-up under CEO ​Fernando Fernandez, the British group's shareholders would likely keep a majority stake in the new entity, Reuters reported late last week.

 

Shares of Unilever ​rose 1.1% in London trading Monday.