Unilever has ousted chief executive Hein Schumacher after less than two years, replacing him with chief financial officer Fernando Fernandez as the consumer goods group steps up efforts to revive its fortunes.
Schumacher, who has led the group since July 2023, will step down by “mutual agreement” on March 1, Unilever said on Tuesday.
The abrupt change comes as Unilever faces growing pressure from investors, including US activist Nelson Peltz, to improve its lacklustre performance.
It is in the middle of a wide-ranging restructuring initiated by Schumacher, including cutting 7,500 jobs and demerging its ice cream business.
The decision to remove Schumacher was taken at a board meeting on Monday, according to a person familiar with the matter, after the group’s directors concluded that Fernandez was “better suited” to execute the turnaround plan.
The person added that Fernandez was popular with investors and had impressed at Unilever’s capital markets day late last year.
Fernandez, an Argentine who has been at Unilever for almost 40 years, previously led the group’s beauty business. He took over as chief financial officer in early 2024.
Unilever chair Ian Meakins said: “The board has been impressed with Fernando’s decisive and results-oriented approach and his ability to drive change at speed.”
Schumacher’s exit comes less than a month after its annual results and muted outlook for growth disappointed investors. Analysts said that each of the company’s divisions had missed their target in the fourth quarter.
Meakins said: “I would like to thank Hein for resetting Unilever’s strategy, for the focus and discipline he has brought to the company and for the solid financial progress delivered during 2024.”
Schumacher said in November that he would sell smaller and underperforming food brands, amounting to about £1bn in revenue, which could include anything from its plant-based food brand Vegetarian Butcher, to Pot Noodle, Marmite and Colman’s.
Shares in Unilever slipped 2 per cent in early trading on Tuesday as investors digested the news.
Schumacher will leave the group on May 31.