Unilever Ousts CEO Hein Schumacher; Finance Chief To Replace Him

Unilever has surprised investors by ousting CEO Hein Schumacher and replacing him with finance chief Fernando Fernandez, who will take on the tough task of reviving the consumer group's performance, Yadarisa Shabong reported for Reuters.

Schumacher's departure comes after less than two years on the job. I Photo: Unilever X

Schumacher's sudden departure after less than two years on the job caused Unilever's shares to fall as much as 3.4% on Tuesday. The stock had gained more than 9% since Schumacher took the helm.

The management change was made after a board meeting on Monday, a source familiar with the matter told Reuters.

The board concluded that Fernandez, who has been with Unilever for more than 30 years, was the right person to execute the company's strategy, the source said.

Unilever, which did not provide a specific reason for the leadership change, is under pressure from investors to revitalize its business. The top management shake-up comes just weeks after the company announced underwhelming full-year earnings.

The consumer goods industry has faced challenges in recent years, dealing with supply chain disruptions triggered by the COVID-19 pandemic, soaring commodity prices, and an energy crisis following Russia's invasion of Ukraine.

Profit margins have been squeezed, and sales volumes have declined as consumers opt for cheaper alternatives.

Nestlé CEO Mark Schneider was also ousted last year after several quarters of weak sales growth.

Schumacher’s appointment and strategic changes had been welcomed by billionaire activist investor Nelson Peltz, who built a stake in Unilever in 2022 and sits on the company’s board.