Unilever to review leadership as CEO pushes performance reset

UK – Unilever is undertaking a leadership review as part of its drive to enhance its performance culture and eliminate what its new chief executive has described as mediocrity.

Fernando Fernandez, who assumed the role of CEO in March 2025, disclosed at the Barclays Global Consumer Staples Conference on September 3 that the company has begun assessing its top 200 leaders “one by one” with support from executive consultancy Korn Ferry. 

The process is expected to result in a 25% refresh, meaning approximately 50 senior managers could be replaced.

“Are they good enough, are they at the level that Unilever deserves, yes or no?” Fernandez told the audience, stressing that accountability would now sit at the center of the consumer goods group’s culture. “We are fed up with the mediocrity that we have in some places. We are attacking that fast.”

The initiative comes as Unilever attempts to accelerate growth after years of what Fernandez described as inconsistent performance. 

He pointed to the derailment caused by Kraft Heinz’s abandoned USD 143 billion takeover bid in 2017, which shifted focus away from volume growth.

“We lost our focus on volume growth,” he acknowledged, noting that regaining momentum is a top priority.

Since early 2024, Unilever has reduced its white-collar workforce by 18% as part of a wider restructuring plan aimed at saving USD 800 million by 2026. 

The company is on track to reach USD 650 million in cumulative savings by the end of this year.

The leadership reset is occurring alongside structural changes in the business portfolio. 

Unilever is expanding its presence in beauty and personal care while preparing to spin off its €15 billion (USD 17.5 billion) ice cream unit, which owns brands such as Ben & Jerry’s and Magnum. 

The demerger is expected to be completed by mid-November this year, with the operational separation now finished.

Fernandez described the move as having a “significant” financial impact and a crucial step toward focusing the company on higher-margin categories.

Geographically, Unilever is prioritising investment in the US and India, which Fernandez has labelled the company’s two growth engines. 

He has ruled out mergers and acquisitions outside these markets, pledging to concentrate capital on scaling power brands and delivering consistent volume growth.

“Our first-half performance positions us well for the full year,” Fernandez said. “We are building a marketing and sales machine that drives desire at scale, while ensuring execution excellence across all channels.”

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