'Are They Good Enough?': Unilever CEO Declares War on Mediocrity With Plan to Axe Up to 50 Executives

Unilever's new chief executive, Fernando Fernandez, has initiated a sweeping overhaul of the company's leadership, pledging to replace up to 25% of its top 200 managers, around 50 executives, as part of a broader strategy to revitalise the consumer goods giant.

Speaking at the Barclays Global Consumer Staples Conference in Boston, Fernandez did not mince words. 'Are they good enough? Are they at the level that Unilever deserves?' he asked, referring to the company's senior leadership.

The CEO, who took the reins in March 2025, described Unilever as a 'bloated organisation' plagued by 'inconsistent performance' and 'pockets of mediocrity' that have undermined its global competitiveness.

'We have absolute accountability now in the company," he said. "Four business group presidents, 44 P&L units. I have their names, I have their phone numbers, and I know who they are. Nobody can hide.'

As part of his overhaul, Fernandez is streamlining decision-making by cutting down the number of people involved. He's also urging leaders to move faster and operate with a higher tolerance for risk.

A Legacy of Stalled Growth

Fernandez's aggressive strategy marks a sharp departure from the more cautious approach of his predecessors. He attributed Unilever's stagnation to a loss of focus following its successful defence against a 2017 takeover bid by Kraft Heinz.

'We lost our focus on volume growth,' he said, noting that the company has struggled to regain momentum ever since.

The CEO's remarks reflect a broader frustration with Unilever's recent performance. Despite its portfolio of household brands, including Dove, Hellmann's, and Ben & Jerry's, the company has faced mounting pressure from investors to deliver more substantial returns and streamline operations.

Structural Reforms and Strategic Priorities

In addition to the leadership purge, Fernandez is pushing forward with a restructuring plan initiated by former CEO Hein Schumacher. This includes the planned spin-off of Unilever's ice cream division, home to brands such as Magnum and Ben & Jerry's, by November 2025.

The company has also reduced its white-collar workforce by 18% over the past year and a half, with further cuts expected. Unilever previously announced plans to eliminate 7,500 office-based roles by 2026, as part of its effort to simplify operations and improve efficiency.

Fernandez has made it clear that future investment will be concentrated in high-growth markets, particularly the United States and India. 'India will be for Unilever what China has been for some of our competitors over the past decade,' he said.

Investor Reaction and Industry Impact

The bold leadership overhaul has drawn mixed reactions from investors and analysts. While some applaud Fernandez's decisive approach, others caution that success will depend on effective execution and the ability to retain top talent amid sweeping changes.

Unilever's move also sends a strong signal to the broader consumer goods industry, where sluggish growth and rising competition have prompted calls for greater accountability and innovation. By benchmarking its leadership against market standards, Unilever is positioning itself as a company unwilling to settle for average.

Whether Fernandez's leadership overhaul will achieve the intended turnaround remains to be seen. What is evident, however, is that Unilever is undergoing a significant shift in its approach to performance and accountability.