Unilever, the British consumer goods giant known for brands like Dove and Ben & Jerry's, is undergoing a significant leadership change as CEO Hein Schumacher steps down after less than two years at the helm. The announcement, made public on February 25, 2025, indicated Schumacher's resignation will be effective March 1, 2025, followed by his official departure from the company on May 31, 2025. He will be succeeded by Fernando Fernandez, who has served as Chief Financial Officer since January 2024.
Schumacher's exit has been described as mutually agreed upon, taking place alongside the troubling financial reports from Unilever, which showed marked profit declines over the previous two years. Despite these setbacks, Unilever's Chairman, Ian Meakins, praised Schumacher for his efforts, stating, "Hein introduced and led significant productivity programs and the commencement of the Ice Cream separation, both of which are fully on track." Meakins, who acknowledged the challenging financial climate, also emphasized the need for renewed growth within the company.
The apparent instability has raised eyebrows among investors, resulting in Unilever shares falling by 3% following the announcement, even as the broader market showed positive movement. This leadership shift arrives on the heels of Schumacher's ambitious restructuring plans, which included thousands of job cuts and initiatives aimed at streamlining Unilever's extensive portfolio.
Schumacher took over the CEO position in July 2023, succeeding Alan Jope, who was also criticized for his management style and faced pressure from activist investors. During Schumacher's short tenure, Unilever re-evaluated its strategies, launching the Growth Action Plan focusing on long-term sustainability and financial performance improvements.
On his resignation, Schumacher expressed pride in the progress made during his time, stating, "It has been a privilege to lead Unilever. We have made real progress, and I am proud of what we have achieved in such a short period of time. With a clear strategy, a portfolio reset in motion, and a strong leadership team, I look forward to seeing Unilever move from strength to strength." His statements underscored his commitment to maintaining the momentum of the changes initiated at Unilever.
Now, stepping up to the role of CEO is Fernando Fernandez, who has also had significant influence within the company, previously leading the Beauty & Wellbeing division—one of Unilever's fastest-growing sectors. Before this, Fernandez held various leadership roles within the company across Latin America and Asia, including stints as CEO Brazil and CEO Philippines. His extensive experience within Unilever has positioned him as a promising choice to steer the company back onto the path of profitability.
Upon his appointment as CEO, Fernandez remarked, "Being appointed as CEO of Unilever is an honor. Our focus will be on building a future-fit portfolio with attractive growth footprints and delivering unmatched functional and perceivable superiority across our top 30 power brands." His vision points not only to growth but also to enhancing brand performance, which serves as the backbone of Unilever's expansive offerings.
The leadership transition also includes changes on the financial front, with Srinivas Phatak, currently the Deputy CFO and Group Controller at Unilever, becoming the acting CFO. Unilever has initiated both internal and external searches for a permanent CFO. Meakins expressed confidence, remarking on Fernandez’s ability to deliver growth, stating, "Having worked with Fernando closely over the last 14 months, the Board is very confident in his ability to lead our high-performing management team and provide the shareholder value the company demands."
Despite the abrupt leadership changes, Unilever maintains its guidance for 2025, indicating no anticipated changes to their financial outlook. Meakins reiterated their commitment to progressing on the Growth Action Plan, emphasizing the need to expedite execution to capitalize on Unilever's potential. With Schumacher's tenure shadowed by mixed results and increasing pressures from markets, Fernandez’s forthcoming leadership may lead to new opportunities for Unilever.