Unilever Sends 25,000 Packing

Anglo-Dutch consumer products giant Unilever said Tuesday it will lay off 25,000 employees, or 10 percent of its global workforce, as part of a sweeping restructuring.

The company made the announcement as it released year-end 1999 earnings that showed a five percent drop in net profit.

The company said the layoffs would be made over the next five years, mainly in Europe and the Americas, as it closes 100 of its 250 production sites in a move to regroup its manufacturing operations into regional networks.

Unilever is known for a wide array of household name products including Lipton teas, Calvin Klein fragrances, Dove soap, Close-Up toothpaste and Breyer's ice cream. It said its 1999 net profit slipped to $2.97 billion, down from $3.28 billion in 1998.

Late last year, Unilever disclosed that it would focus on 400 of its current 1,800 brands. It announced it will invest $1.5 billion to market that smaller product lineup over the next five years.

Unilever said the restructuring would cost an estimated $5 billion.

Antony Burgmans, chairman of Unilever's Dutch arm, said in a statement he expects net earnings per share to grow between eight percent and 10 percent, before exceptional items, in 2000. He said improved conditions in emerging markets, Western Europe and North America will be the driving force behind the growth.

In the past year, Unilever posted an increase in operating profits and margins in all regions but Latin America, where "difficult economic conditions" and tougher competition in the laundry market hurt results, Burgmans said. Unilever is one of the world's largest manufacturers of laundry detergent.

The company said it will also invest $200 million this year to expand its Internet business activities and plans to start a Web site over the next two years where consumers can buy the company's products. It said more investment in e-business could be expected beyond the year 2000.

Burgmans said Unilever would "continue to look aggressively for value-adding acquisitions and alliances that will further consolidate and reshape our industries."

Unilever employs 250,000 people worldwide.