JAKARTA - Unilever has stopped recruiting employees globally for at least three months. According to a report by The Straits Times citing Reuters, the decision was made after the escalating Iran conflict began to put pressure on costs and add business uncertainty.
In an internal memo sent to employees last weekend, Unilever said the hiring freeze was effective immediately and covered all levels. The main reason is that the war in the Middle East is no longer a geopolitical risk, but has entered the company's operational calculations.
Fabian Garcia, head of Unilever's personal care business, wrote in the memo that macroeconomic and geopolitical realities, especially conflicts in the Middle East, pose major challenges for the next few months. Based on this consideration, Unilever's executive team agreed to a global hiring freeze of at least three months.
This move shows that the pressure of the Iran conflict is beginning to spread to consumer goods businesses. According to a report by The Straits Times quoted on Tuesday, March 31, the war has disrupted global trade flows and triggered large-scale disruptions in oil and gas supplies. The rapid rise in energy costs is now spreading to other industries, including chemicals and plastics, two sectors that are important for Unilever's supply chain.
Even though many of its products are made in the country where the goods are sold, Unilever still relies on chemicals, food, packaging, and other raw materials that are very sensitive to energy costs. When costs go up, the pressure eventually reaches the company's table.
This step was taken after Unilever first carried out a savings program since 2024. The program is targeted to cut costs by around 800 million euros in three years. The plan was previously estimated to impact around 7,500 jobs worldwide, mainly office positions.
Unilever's current employee count is around 96,000, down from around 149,000 in 2020. At the same time, the company with more than 400 brands is still struggling to drive sales volume growth after the Covid-19 pandemic.
The Straits Times reported that on March 20, Unilever also revealed that it was negotiating to sell its food business to McCormick & Company. If the plan continues, the move will be a major change under Chief Executive Fernando Fernandez.
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