UK: Lipton looks safe from Unilever job losses
Unilever has unveiled plans to cut 20,000 jobs from its workforce - the equivalent of 11% of its workforce.
The consumer goods company, which owns the Lipton RTD tea brand, said today (3 August) that the cuts will come across Europe, where Unilever leans more towards its food products than towards Lipton.
Speaking to just-drinks, a spokesperson for Unilever said the company is looking to manage its businesses on a more regional basis, rather than country-by-country. "We're going from a company of around 100 country organisations and 20 categories - and you can imagine what a complicated matrix that looks like - to one of 25 country organisations and 10 categories," he said. "It will be much, much simpler."
When asked specifically about any effect on the Lipton business, the spokesperson said: "There is nothing specifically related to tea, other than our comments yesterday on the performance of the category, which were good.
"One of the things that doesn't really get seen is the joint venture we have with Pepsi, under which we distribute our Lipton RTD tea … That number falls under the joint venture line on the P&L, so it doesn't really contribute to our growth number.
"The joint venture is going very well; the contribution from the joint venture is going up all the time."
Earlier this week, Unilever posted a 5.8% rise in underlying revenues to EUR10.5bn (US$14.3bn). Underlying operating profit for the quarter rose 3% to EUR1.4bn.
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