Unilever has announced the sudden departure of CEO Hein Schumacher. Hein Schumacher will resign to the “mutual agreement” on March 1st.
The consumer goods giant has appointed Chief Financial Officer Fernando Fernandez. Fernando Fernandez has been with the company for nearly 40 years and has appointed him as the new CEO to accelerate his turnaround strategy.
This move will be driven by increasing pressure from investors, including renowned activist Nelson Peltz, to improve financial performance. Schumacher’s departure follows the launch of a critical restructuring effort under his leadership, with the aim of streamlining the business and reducing costs.
This includes plans to separate Unilever’s ice cream division and fire 7,500 employees. However, the restructuring has caused internal disruption, with senior executives leaving the company.
Unilever’s board of directors concluded at Monday’s meeting that Fernandez, known for his decisive and outcome-oriented approach, is suited to lead the company through the next phase of change.
Analysts point out that Schumacher’s departure was unexpected, but Fernandez’s promotion is seen as a move to inject more speeds and focus on turnaround plans.
Fernandez, who previously led Unilever’s beauty business, took over as CFO earlier this year and is well-respected by investors for his hands-on approach. His appointment is considered positive by analysts, but note that his direct style contrasts with Schumacher’s more modest leadership style.
Schumacher’s tenure at Unilever was marked by his ambitious restructuring initiative and his attempt to revive the company’s fate. However, recent financial results have raised concerns about the effectiveness of these strategies, with the company projecting weak growth and low performance revenues ahead. Nevertheless, Schumacher’s efforts to overhaul Unilever were seen as a step towards revitalizing companies that have struggled to reduce market share in recent years.
Unilever’s stock is working well under Schumacher’s leadership, rising 11% since his appointment, but investors have responded carefully to news of his departure, and stocks in early trading on Tuesday has decreased by 2%.
In a statement, Unilever Chairman Ian Meakkins praised Schumacher for his work resetting the company’s strategy in 2024 and promoting economic progress. Meekins also expressed confidence in Fernandez’s ability to accelerate the transformation of the company.
Schumacher, appointed in 2023 by former chairman Nils Andersen, will leave Unilever on May 31st.