Unilever to axe 25,000 jobs in overhaul

The Anglo-Dutch giant — maker of such leading brands like Dove soap, Lipton tea and Calvin Klein fragrances — said it will focus on 400 leading brands and invest 1.0 billion pounds in additional marketing support for them over five years. "The remaining businesses that do not meet performance standards or which are no longer part of our strategy will be reorganised or divested," the company said in a statement.

Specifically, it said the Elizabeth Arden cosmetics unit will be restructured during 2000. It also said, "The future of our European bakery business is under review. It is being restructured to improve performance significantly or it will be divested by the year-end."

Annualised savings from these initiatives were projected to be 1.0 billion pounds by 2004. The program’s costs were estimated at 3.3 billion pounds, with most of the expected job losses coming in Europe and the Americas.

The company reported 1999 pre-tax profits of 2.92 billion pounds on a constant currencies basis, down five per cent from 1998. Earnings per share before exceptional items were 28.37 pence, also on a constant currencies basis, up nine per cent over the prior year. "We had a stronger fourth quarter than perhaps the market was expecting…All in all the year ended better than it had been in the earlier part," said Chairman Niall Fitzgerald.

Sales were 27.63 billion pounds on a constant basis, up two per cent from the previous year. On a current currencies basis, turnover was 26.99 billion pounds, flat versus 1998.

The proposed final divided was 8.57P per ordinary Plc share, boosting the total dividend per share by 17 per cent.