“Unilever is ending manufacturing of beauty and personal care products in Amityville in April of next year and will transfer production to other locations in our U.S. manufacturing network,” Unilever said in a statement.
“We will also end operations at the plant’s warehouse in Farmingdale,” Unilever added.
Why the layoffs?
Unilever explains: “We are realigning production to support our growth plans for these product categories as the Amityville factory site has considerable size constraints that limit its ability to expand.”
This move is a part of Unilever’s updated organizational model, first announced in January 2022, which strives for a “simpler, more category-focused business,” with growth as a top priority.
Meanwhile, in October, Unilever reported solid Q3 results:
Beauty & Wellbeing delivered 7.4% underlying sales growth with a balance of price and volume growth, with Prestige Beauty and Health & Wellbeing continuing to grow strongly.
Personal Care grew 8.0% with 4.0% from price and 3.9% from volume driven by double-digit growth from Deodorants.
Last month, new CEO Hein Schumacher outlined the company’s action plan, explaining: “We will drive faster growth by stepping up innovation and investment behind our Power Brands; we will drive simplicity and productivity, leveraging the full strength of our operating model; and we will sharpen our performance culture through strong leadership and stretching goals.”