Unilever, the maker of Dove soap, has imposed a global hiring freeze “at all levels” that will persist for at least three months, citing the impact of the escalating conflict in the Middle East, as reported in a memo obtained by Reuters.
The memo, which was distributed to employees late last week and had not been previously disclosed, indicated that the freeze would take effect immediately and was prompted by the “significant challenges” emerging from the ongoing Iran war.
Companies worldwide, from airlines to retailers, are racing to shield themselves from the consequences of the Iran war, which has disrupted global trade and resulted in unprecedented upheaval in oil-and-gas supplies. The rapid increase in energy prices is already affecting other markets, leading to reduced production in sectors such as chemicals and plastics.
“Macro economic and geopolitical realities, particularly in the context of the Middle East conflict… present significant challenges for the upcoming months,” Fabian Garcia, head of Unilever’s personal care division, noted in the memo sent to staff.
“In light of this, the Unilever Leadership Executive team has approved a global recruitment freeze at all levels. This will take effect immediately and last for a minimum of three months.”
The consumer products giant based in London owns several of the world’s leading brands. While it manufactures most of its products where they are sold, it procures energy-intensive raw materials such as chemicals, food, and packaging.
In a statement, Unilever acknowledged the “uncertain external environment” and stated that they decided to implement a temporary pause in recruitment, adding that they will “always adjust our plans as necessary.”
Unilever was already engaged in cost-cutting
This hiring freeze adds to an existing cost-cutting initiative that Unilever has been executing since 2024, aimed at saving approximately 800 million euros ($916.72 million) over the next three years. The initial plan was expected to affect about 7,500 jobs globally, primarily in office settings.
The company’s current workforce of 96,000 has decreased from roughly 149,000 employees in 2020.
Unilever has faced challenges in growing sales volumes across its sectors following the Covid-19 pandemic. They are currently in discussions to sell their foods division to smaller competitor McCormick & Company (MKC.N), as announced on March 20.
If the proposed merger goes through, it would represent a significant change under CEO Fernando Fernandez, with British shareholders likely retaining a majority stake in the newly formed entity, as reported by Reuters late last week.
Unilever’s shares rose by 1.1% in London trading on Monday.
