Unilever, the multinational consumer goods giant, has announced the sudden departure of its CEO, Hein Schumacher, after less than two years in the role. Schumacher will be replaced by the company’s Chief Financial Officer, Fernando Fernandez, effective March 1, 2025.
In a statement on Tuesday, Unilever Chairman Ian Meakins expressed confidence in Fernandez’s leadership, highlighting his “decisive and results-oriented approach” and his ability to drive change at a rapid pace. “The board is very confident in Fernando’s ability to lead a high-performing management team, realize the benefits of our growth plan with urgency, and deliver the shareholder value that the company’s potential demands,” Meakins added.
Unilever’s Growth Action Plan and Ice Cream Spin-Off
Schumacher’s resignation comes as Unilever continues to implement its Growth Action Plan, a strategic initiative launched in late 2023 to improve sales, streamline operations, and enhance profitability. One of the most significant aspects of this plan includes the spin-off of its ice cream division, which includes household names like Ben & Jerry’s and Magnum.
The company previously stated that the ice cream business has “distinct characteristics,” such as seasonal demand fluctuations and complex supply chain requirements due to the need for frozen storage and distribution. By separating it from its core operations, Unilever aims to create a more focused and agile company.
Job Cuts and Market Reaction
In addition to the restructuring, Unilever is also cutting 7,500 office-based jobs as part of its broader efforts to increase efficiency through digital transformation. The company hopes that leveraging technology will help optimize costs and improve operational effectiveness.
Following the news of Schumacher’s departure, Unilever’s shares dropped nearly 1.6% in early trading on Tuesday. Analysts have described the move as unexpected, with some suggesting it could be a pivotal moment for the company’s future direction.
Matt Britzman, a senior equity analyst at Hargreaves Lansdown, called the resignation a “surprise twist” and noted that it might be the catalyst for the long-awaited transformation of Unilever.
As Fernandez steps into his new role, all eyes will be on how he steers the company through these major changes, from the ice cream spin-off to cost-cutting measures and broader strategic shifts.
