Consumer goods group Unilever has implemented a global hiring freeze for at least three months, citing the impact of geopolitical tensions in the Middle East.
According to a memo sent to staff last week and seen by Reuters, the hiring freeze applies at all levels, with immediate effect. The move comes as the company faces ‘significant challenges’ linked to the Iran-related conflict over the past month.
“Macro economic and geopolitical realities, especially in the Middle East conflict… bring some significant challenges for the coming few months,” wrote Fabian Garcia, head of Unilever’s personal care business. “With this in mind, the Unilever leadership executive team has agreed to a global recruitment freeze at all levels. This will be effective immediately and last for a minimum of three months.”
In a separate statement, the company said that, due to an ‘uncertain external environment’, it has decided to temporarily pause hiring and will adjust plans as needed.
While the company produces most of its goods in the markets where they are sold, it relies on energy-intensive inputs such as chemicals, food, and packaging. Those rising energy costs are putting pressure on margins.
Across industries, companies from airlines to retailers are taking steps amid disruptions to trade and oil and gas supply. Higher energy costs are affecting the chemicals and plastics sectors and slowing production.
The hiring freeze adds to a cost reduction programme introduced in 2024, targeting savings of about $916.72 million over three years. The changes were expected to affect around 7500 roles globally, mainly office-based positions. The company’s workforce is about 96,000, down from about 149,000 in 2020.
After the Covid-19 pandemic, Unilever has faced challenges in driving volume growth. The company is in talks to sell its foods business to McCormick & Company, it said on March 20. The proposal would mark a shake-up under CEO Fernando Fernandez and could result in shareholders of the UK-based group holding a majority stake in a new entity.
