Unilever unveils 20,000 job cuts

Unilever's strategy change has already led to heavy job losses

Consumer goods giant Unilever is to cut 20,000 jobs - 11% of its workforce - over the next four years.

The cuts will focus on European operations, but the firm said it was too early to give more details.

Unilever, whose brands include Hellmann's Mayonnaise, Surf and Lipton, employs about 179,000 people, including 8,000 in the UK.

Since 2004, it has already trimmed its staff from 223,000 by selling off brands and altering business methods.

The company plans to close or streamline about 50 of its 300 factories and to reduce its regional centres from about 100 to 25, as part of a bid to save 1.5bn euros a year by 2010.

"The majority of restructuring falls in Europe, where structural costs are highest and where regional supply chain management offers the greatest opportunity," said chairman Patrick Cescau.

Unilever's UK presence includes manufacturing sites at Port Sunlight and Leeds.

Disposals planned

The announcement came as Unilever predicted annual sales growth would be at the top end of forecasts after enjoying a strong start to the year.

The firm - whose other brands include Knorr soups, Magnum ice creams and Dove soap - said its tactic of concentrating on core brands was succeeding.

Unilever saw underlying sales grow by 5.8% in the April-to-June period, well ahead of analysts' expectations.

It now expects annual sales growth at the top end of its 3-5% target range.

The progress made had put Unilever in a position to take radical action, said chief financial officer Rudy Markham.

"We've created the right conditions for accelerated progress," he said.

Unilever has also said it will sell off some of its businesses seeing slower growth. It plans disposals of more than 2bn euros of turnover, including its North American laundry business.