Unilever has announced the unexpected departure of CEO Hein Schumacher, who will leave the company by “mutual agreement” on March 1, after less than two years in the role. The consumer goods giant has named Chief Financial Officer Fernando Fernandez as its new CEO, signaling a renewed push to accelerate its ongoing turnaround strategy.
The leadership change comes as Unilever faces mounting pressure from investors to improve its financial performance and operational efficiency. Schumacher’s exit follows the rollout of a major restructuring plan under his leadership, which included the proposed separation of Unilever’s ice cream division and the elimination of 7,500 jobs. While these measures aimed to streamline operations and reduce costs, they have also sparked internal unrest and a wave of senior executive departures.
In a board meeting held earlier this week, Unilever’s directors concluded that Fernandez—a seasoned executive with nearly four decades of experience at the company—was better positioned to steer the organization through its next phase of transformation. Known for his decisive and results-driven leadership style, Fernandez is expected to bring a sharper focus and faster execution to Unilever’s growth strategy.
Analysts have described Schumacher’s departure as surprising but view Fernandez’s promotion as a strategic move to reinvigorate the company’s performance. Fernandez, who previously led Unilever’s beauty and personal care division, took on the CFO role earlier this year and has earned the trust of investors for his hands-on approach. However, some observers note that his direct management style may differ significantly from Schumacher’s more reserved demeanor.
Schumacher’s tenure at Unilever was marked by bold restructuring initiatives aimed at reviving the company’s fortunes. Despite these efforts, recent financial results have raised concerns about the effectiveness of the strategy, with Unilever forecasting sluggish growth and underwhelming earnings for the coming year. Nevertheless, Schumacher’s work to overhaul the business has been widely recognized as a critical step in addressing the company’s declining market share.
Under Schumacher’s leadership, Unilever’s share price had risen by 11%, reflecting initial optimism about his plans. However, news of his departure prompted a cautious reaction from investors, with shares dipping by 2% in early trading on Tuesday.
In a statement, Unilever Chairman Ian Meakins commended Schumacher for his contributions, particularly in resetting the company’s strategy and driving financial progress throughout 2024. Meakins also expressed confidence in Fernandez’s ability to build on this foundation and deliver accelerated growth.
Schumacher, who was appointed by former chairman Nils Andersen in 2023, will officially leave Unilever on May 31. The decision to part ways is described as amicable, and Schumacher will receive a payment in lieu of the remainder of his notice period.
As Unilever moves forward under new leadership, all eyes will be on Fernandez to see if he can deliver the transformative results that investors have been eagerly anticipating.
