Hindustan Unilever (HUL) is reportedly going to monitor the parent company's productivity programme and decide based on the results whether it will take the same roadmap. After considering the outcome of the global giant's initiative, HUL will plan out growth related activities best suited for the company and its employees.
HUL released this in a statement recently after Unilever its parent organisation announced a job cut of a third of its office-based employees in Europe by the end of 2025. "We will have discussions with the Unilever global team and arrive at a decision, which will be in the best interest of each. That decision is yet to be made," said Nitin Paranjpe to shareholders in an annual general meeting. He is a non-executive chairman of HUL.
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"In HUL, we have been continuously transforming to unlock productivity. For instance, we have a robust cost-saving programme called Symphony that we have been driving for many years. Through an end-to-end focus across all lines of the P&L (profit & loss), we have been generating gross savings of around six per cent of turnover annually," said HUL in a company statement.
The global consumer giant in March announced productivity programme initiative as a part of the broader step called Growth Action Plan (GAP). The step was undertaken by the new CEO of Unilever, Hein Schumacher to boost company's growth.
The initiative focuses to improve overall productivity and increase profit margin. Under the programme, it will use technology-led interventions to avoid any duplicity and standardise the process.
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Under the initiative the company is also planning rework on portfolio to come up with operating models most suited for them. Recently, it has already announced to separate the ice-cream business which will result in changes in its ownership structure and have more specific innovation and business strategy.
As a part of productivity programme, Unilever has started consultation process in Europe with those workers who's role will be impacted.
The changes under the consumer giant's new initiative will likely impact around 7,500 office-based roles internationally over the next three years time span.
