Unilever Targets €1 Billion in Savings by 2029
The consumer goods maker aims to accelerate its overhaul under CEO Fernando Fernandez through simplified operations and combined food business costs.
Updated on Nov. 3, 2026 in Business Strategy
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Unilever is targeting savings of €1 billion ($1.1 billion) by the end of 2029 to accelerate the overhaul led by Chief Executive Officer Fernando Fernandez. The company will find the savings by simplifying operations and dealing with stranded costs from combining its food business with McCormick & Co.
Why it matters
The savings will release money Unilever can put toward growing sales. The move comes as underlying sales declined across developed markets in the fiscal third quarter, while food sales held steady overall.
Unilever's €1 billion savings target runs through 2029, and the company kept its 4% to 6% underlying sales growth goal unchanged despite developed-market declines. It has not said how the savings will be split across operations and stranded costs.
The players
Fernando Fernandez
Fernandez is the Chief Executive Officer of Unilever, leading the company's ongoing organizational overhaul.
Unilever
Unilever is a major British-Dutch consumer goods company headquartered in London that sells food, beauty, and household products worldwide.
McCormick & Co.
McCormick & Co. is an American spice and seasoning company whose combination with Unilever's food business is creating stranded costs.
The details
Unilever stock fell 0.7% in London following the announcement and has barely moved so far this year. The company will present its strategy at a capital markets day on Wednesday, and once the food deal with McCormick concludes, it will report results across three categories and five geographic areas.
Timeline
2024: Unilever announced elimination of 7,500 positions in a broader restructuring effort.
Q3 2026 (fiscal third quarter): Underlying sales declined across developed markets while food sales held steady overall.
November 3, 2026: Unilever announced its €1 billion savings target.
Wednesday, November 4, 2026: Unilever presents its strategy at a capital markets day.
End of 2029: Target date for the €1 billion in savings.
Market Landscape
The savings target extends Unilever's 2024 restructuring, which eliminated 7,500 positions in a broader effort to cut costs. Like its peers, the company is trying to protect margins while sales growth in developed markets slows.
Shoppers may see changes to Unilever's product lineup and pricing as the company simplifies operations and reshapes its food business. The savings are meant to fund sales growth rather than immediate price changes.
The takeaway
Cost-cutting programs can free money for growth, but investors have so far reacted cautiously, with Unilever stock barely moving this year. Companies pursuing similar overhauls will be watched closely for whether savings translate into sales gains.
What happens next
Unilever will present its strategy at a capital markets day on Wednesday, November 4, 2026, and the food business combined with McCormick will close next year.
Further reading
For more on corporate restructuring plans like this one, see Business Strategy.
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