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Unilever is unexpectedly replacing its chief executive, as the maker of Dove soap and Hellmann’s mayonnaise seeks to accelerate plans to revive its fortunes.
The company said Tuesday that Hein Schumacher would step down by mutual agreement on March 1, less than two years after taking the helm with the endorsement of activist investor Nelson Peltz. He will be succeeded by finance chief Fernando Fernandez, a company veteran.
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The sudden shake-up comes as Schumacher is in the midst of implementing a major turnaround plan at Unilever, with the aim of cutting costs and stepping up growth. The company said last year it would cut some 7,500 jobs while also spinning off its ice cream business, which includes the Ben & Jerry’s brand.
As recently as this month, Schumacher told investors that those efforts were ahead of schedule, though the company warned that it expected its markets to remain soft in 2025.
“While the board is pleased with Unilever’s performance in 2024, there is much further to go to deliver best-in-class results,” Chairman Ian Meakins said in a statement Tuesday.
Unilever has for years faced analyst and investor pressure to reinvigorate growth across its sprawling portfolio while contending with rising input costs, changing consumer trends and broad economic uncertainty.
Pressure on Unilever increased in 2022, when Peltz’s Trian Fund Management took a stake in the company. The investor was later added to its board.
Schumacher was viewed as the man to shake up the slow-moving conglomerate. At the time of his appointment, Unilever talked up the executive’s turnaround experience, including at U.S. foods group Heinz.
The Dutch businessman was perceived to be Peltz’s preferred candidate for the top job, with the investor giving the executive a glowing endorsement as someone he had been impressed by during his time on the board of the ketchup maker.
Since taking the helm in July 2023, Schumacher’s efforts to simplify Unilever had been well received by investors, with the London-based company’s stock up roughly 10% over the past year.
Nevertheless, Unilever’s board decided to oust Schumacher at a meeting late Monday, concluding that the charismatic Fernandez was better suited to push forward the turnaround plan at a rapid pace, according to a person familiar with the matter.