Unilever targets $1.12 billion savings in home, personal care pivot
UL•Unilever plans to cut €1 billion ($1.12 billion) in costs by the end of 2029 as it shifts focus to home and personal care. It will group markets into six performance units from 2027 and reaffirmed medium-term sales growth targets.
1. Savings and new structure
Unilever will overhaul its operating model and deliver €1 billion ($1.12 billion) in savings by the end of 2029 through organizational simplification, process redesign and technology initiatives. The savings will help address costs related to the planned combination of its food business with McCormick, expected to complete by mid-2027.
2. Markets and targets
The new model will be progressively implemented during 2027, grouping markets into six performance units led by regional presidents with full profit-and-loss accountability. Unilever will report across beauty and personal care, home care, and other categories. It reaffirmed medium-term targets of 4-6% annual underlying sales growth by value, including volume growth of at least 2%, and expects to perform in line with that algorithm in 2027.
