Unilever is undergoing a significant leadership overhaul as newly appointed CEO Fernando Fernandez implements sweeping changes to revitalize the struggling consumer goods giant. The company plans to review 200 senior leadership positions, with approximately 25% of these roles set for replacement as part of broader turnaround efforts, according to Cosmetics Business.
Eliminating “Pockets of Mediocrity”
Speaking at the Barclays Global Consumer Staples Conference in Boston, Fernando Fernandez (CEO) outlined his vision for transforming the Dove and K18 owners’ corporate structure. The CEO made it clear that decisive measures are necessary to address performance issues.
Fernando Fernandez (CEO) shared, “Around 25% of roles at the company will be replaced to eradicate ‘pockets of mediocrity,'” during his presentation. This statement communicates a zero-tolerance approach to underperformance at the executive level.
The leadership review comes during a period of difficulty for Unilever, which has been contending with lagging sales and has already enacted significant cost reductions. The company has eliminated 6,000 jobs in the first quarter of 2025 as part of its restructuring efforts.
Leadership Transition and Workforce Reduction
Fernando Fernandez (CEO), previously Unilever’s CFO, took the CEO role in March, following Hein Schumacher after just a year and a half. The rapid change signals the company’s urgency to move forward.
The new CEO revealed that Unilever has made substantial reductions to its management structure, noting that Fernando Fernandez (CEO) shared, “It has reduced its white collar workforce by 18 in the past 18 months,” he said. This aggressive downsizing shows Unilever’s commitment to streamlining operations.
Seven Clear Priorities for Growth
Fernando Fernandez (CEO) mapped out a focused strategy around seven essential priorities for Unilever’s future direction. His approach stresses particular categories, segments, channels, and geographic markets where the company will focus resources.
Fernando Fernandez (CEO): “More beauty, more wellbeing, more personal care, more premium, more ecommerce, more US, more India,” said. “And our money is following these priorities. You can like it. You cannot like it, but we are very clear about what we want to do.”
Beauty and Personal Care Expansion
A driving force of Unilever’s transformation is the expansion of its beauty and personal care portfolio, especially within the premium sector. Fernandez detailed ambitious objectives for the division’s growth.
Fernando Fernandez (CEO): “[Unilever’s] Beauty and Personal Care now are 51% of our revenue and our ambition is to make it two thirds of our revenue in the mid-term,” said. This signals a substantial repositioning toward higher-margin beauty products.
The CEO stressed the strategic significance of premium positioning. Fernando Fernandez (CEO): “We have a portfolio with probably an excess of exposure to mainstream position and to value position. It is very clear what we are doing. We are acquiring premium, we are divesting value and this is changing the portfolio of Unilever.” said.
He further added, “We are fundamentally innovating in the premium segment to progressively increase our exposure to premium, because the profit pool of our categories is shifting up, in every single one of them,” said Fernandez.
Geographic Focus on the US and India
Unilever’s geographic strategy is now emphasizing two core markets for future growth. Fernando Fernandez (CEO) said: “Making [the] US and India our centres of gravity going forward.”
This geographic concentration carries over to the mergers and acquisitions strategy, with Fernandez taking a resolute position. During the Q&A session, he asserted he would Fernando Fernandez (CEO): “Not deploy a single penny in M&A outside [the] US and outside India.” said.
Unilever has begun implementing this reorientation, having acquired UK-founded personal care brand Wild earlier this year, reflecting a commitment to expanding premium offerings. Fernandez concluded by emphasizing transformation, “There is a fundamental transformation in the Unilever portfolio,” he said. This comprehensive restructuring suggests significant changes lie ahead.
