Unilever Employee Numbers Shrink Amidst Supply Chain Transformation

The number of employees at PT Unilever Indonesia Tbk decreased between 2013 and 2021.

According to its annual reports, in 2013, Unilever Indonesia had 6,719 employees. In subsequent years, the number of employees decreased, as shown in the graph, reaching 4,949 in 2021.

Despite the reduction in its workforce, Unilever Indonesia claims to have continued innovating, including through digital transformation.

"We have doubled our agility in innovation since the beginning of the pandemic. In 2020 alone, we launched at least 40 product innovations to meet the evolving needs of our customers and consumers," as quoted from Unilever Indonesia's official website.

"We focus on developing agile capabilities, undertaking digital transformation, and developing our employees by continuously equipping them with knowledge that can be applied in the long term," Unilever Indonesia further stated.

Unilever Indonesia Faces Layoff Issues

Regarding the decrease in the number of employees, at the end of March 2022, PT Unilever Tbk faced a labor demonstration due to alleged unilateral termination of employment (PHK) of hundreds of employees at one of its factories located on Jl. Rungkut, Surabaya, East Java.

"There are 750 people (laid off), previously 161 people were indicated to be facing potential layoffs by management," said David Eko Irwanto, Deputy Chairman of the Work Unit Leadership (PUK) of the Chemical, Energy, and Mining Workers' Union (SPKEP)-Indonesian All Workers' Union (SPSI), as reported by the official SPKEP-SPSI website on Thursday (31/3).

In response to this issue, management stated that this was part of the business chain transformation.

"To survive in the ever-changing and challenging situation, and to remain relevant in the future (future-fit), the company continuously transforms its entire business operations chain," wrote Unilever Indonesia management in its official statement on Thursday (31/3).

"The transformation has undergone various careful and strategic considerations and is carried out in accordance with applicable regulations and laws in Indonesia. The adjustments applied have undergone objective and comprehensive consideration. In this process, we strive to evaluate various other alternatives before deciding on adjustments that impact human resources," the management continued.

"This is because, no matter how difficult the challenges and business conditions we face, the impact on human resources is always the last resort for the company. The number of employees affected by this operational adjustment is 161 employees," it further explained.

Reski Damayanti, Director and Corporate Secretary of Unilever Indonesia, also provided clarification in Unilever's disclosure letter to the Indonesia Stock Exchange No. 01/UNVR/IV/2022 dated April 5, 2022.

Reski stated that the company fulfilled its obligations and even provided incentives to employees affected by the adjustments.

"In addition to severance pay exceeding the standard obligations stipulated by law, the Company is also committed to providing various other support, including incentives, training, and a series of benefit packages that will support the readiness of affected employees to remain productive after completing their employment with the Company," explained Reski.

(Also Read: 10 Types of Jobs Most Affected by Layoffs Due to Covid-19)