Unilever to cut thousands of jobs globally

55

New Delhi, Jan 25 | Consumer goods giant Unilever is set to announce thousands of worldwide job cuts this week, the BBC reported.

The Marmite and Dove soap maker will slash the positions in more than 100 countries, with cuts in the “low thousands” planned, the BBC report cited a source as saying.

It comes a week after the firm failed in its bid to buy the consumer health division of GlaxoSmithKline (GSK) for 50 billion pounds.

Unilever, which declined to comment on the cuts, faces mounting pressure from investors to accelerate its growth.

The UK-based firm, which has 149,000 staff worldwide, will make the layoffs as part of a wider restructuring that will see it adopt a more competitive operating model.

It is not yet clear where the job cuts will fall. The firm employs more than 6,000 people in its operations in the UK and Ireland.

Last week, Unilever sparked anger from some investors when it dropped a short-lived pursuit of GSK’s healthcare business, the BBC report said.

Unilever had initially said it wanted a bigger slice of the personal healthcare and hygiene market, to offset slow growth in its foods business.

But GSK, which owns brands such as Sensodyne toothpaste and Panadol painkillers, said the offer “fundamentally undervalued” the division and Unilever has since refused to raise its bid.

The saga has sparked unease about the firm’s management under Chief Executive Alan Jope, with the head of Unilever’s 13th biggest investor labelling the GSK bid as a “near death experience”.

Terry Smith, who runs Fundsmith, urged the company to focus on operating performance its existing businesses “before taking on any more challenges”.

In a further twist on Monday, it emerged that the New York-based activist investor Nelson Peltz had taken a position in Unilever.

Peltz’s hedge fund Trian Partners has previously demanded reforms at rival consumer goods firms Procter & Gamble and Mondelez, the report said.

Source: IANS

Next Story

Share Market Closing Bell: Nifty ends above 15,800, Sensex gains 180 pts

Share Market Closing Bell: Nifty ends above 15,800, Sensex gains 180 pts

The benchmark Indices Nifty started on the positive side after continuous sell off in last week and has managed to settle at 15842.30 with 60 point gain or 0.38 percent. However Nifty has failed to regain 16000 levels prior to LIC listing.

While Bank nifty has managed to settle at 33597.60 levels after gaining 1.44 percent. On the sectoral front, Nifty PSU Bank, Nifty Realty and Auto have contributed 2-3 percent gain on closing basis. On the flip side Nifty IT and FMCG ended with losses of 0.75 percent and 0.35 respectively. In Nifty, EICHERMOT, APOLLOHOSP and UPL were the top gainers while ULTRACEMCO, SHREECEM and ASIANPAINT were the prime laggards.

Technically, after forming the bearish candle on the weekly chart, the index has formed a Doji candlestick on the daily chart which shows indecisiveness among the trades. Moreover, the index has also faced a resistance from falling trend lines and showed profit booking from higher levels. However, Fibonacci retrenchment also has support around 15650 levels.

Traders may find buying opportunities for short term as if 15650 levels is protected. In the hourly chart, with support of the middle Bollinger band short term upside movement is expected. Stock specific action would drive the market in coming days too.

On the derivatives front, the highest call OI is at 16000 strike price followed by 16200 strike prices while on the put side, highest OI is at 15500 strike price. INDIA VIX closed at 24.53 with gain of 4.43 percent intraday indicating volatility is going to remain till weekly expiry . On the other hand, Bank nifty has support at 32600 levels while resistance is placed at 34500 levels.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here