Hindustan Unilever aims to cut jobs for cost effective structure

Hindustan Unilever (HUL) is planning to cut jobs as part of the Dutch parent's global mandate to reduce costs across the markets. The extent of job cuts will be known by the end of April. The reduction of jobs could be between 10 per cent and 15 per cent, including layoffs and reduction in new hiring.

HUL employs 18,000 people across factories and offices in India, according to its FY16 annual report, including more than 1,500 managers.

The company’s this exercise is part of a business review. It is also planning for exiting the spreads business of butter and margarine which will help to boost its margin targets.

HUL is also reviewing the dual structure of the Anglo-Dutch company, which exists as two separate entities in the UK and the Netherlands, as per reports published in a leading business news portal.

HUL’s global CEO Paul Polman has committed to the board his strategy to cut costs sharply to protect profitability as it aims to prove that it can deliver growth following its rejection of a takeover attempt by rival Kraft Heinz for 115 billion pounds in February.

The share price of HUL fell by 0.87 per cent in an early trade on Friday and is trading at Rs 925.75 in an intraday basis at 1030 hours.