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| Consumer brand conglomerate Unilever is shifting from a geography-led strategy to a category-led one. Fu Tian/China News Service/VCG via Getty Images |
It’s not just Silicon Valley where CEOs are cracking down on performance. Global consumer brands are joining the trend of sharper leadership and higher accountability. At Unilever, the company behind household names like Dove, Vaseline, and Ben & Jerry’s, new CEO Fernando Fernandez is making sweeping changes at the top — and he’s not holding back.
Speaking this week at the Barclays Global Consumer Staples Conference, Fernandez said he is conducting a full review of the company’s top 200 leaders, a process that could see as many as a quarter of them replaced. The goal, he explained, is to ensure that only leaders capable of delivering world-class performance remain in their roles.
“We are reviewing them one by one and asking: Are they good enough? Are they at the level that Unilever deserves?” Fernandez said. “We are fed up with mediocrity.”
Cutting Back to Drive Accountability
The changes come after an already dramatic workforce shift. Over the past 18 months, Unilever has cut roughly 18% of its white-collar staff, a move Fernandez framed as part of a broader push for accountability and speed in decision-making.
“We have absolute accountability now in the company,” Fernandez emphasized. “Four business group presidents, 44 P&L units. I have their names, I have their phones, I know who they are. Nobody can hide.”
By stripping away layers of bureaucracy and shifting responsibility to clear leaders, Fernandez hopes to create a culture where decisions are made faster and leaders take direct ownership of outcomes.
From Geography to Category: A Structural Overhaul
Alongside personnel cuts, Unilever is also reorganizing how it runs its business. The company is moving away from a geography-led model — where products were managed by region — to a category-led structure, where brands are treated as comprehensive business units.
This change, Fernandez argued, will help leaders focus more directly on brand performance and consumer needs, rather than spreading accountability across multiple markets. It’s a structural shift designed to reduce silos and empower brand leaders with clearer mandates.
Faster Decisions, Higher Risk Tolerance
Fernandez stressed that speed is now central to Unilever’s strategy. Leaders are encouraged to make decisions quickly, even if they aren’t 100% certain.
“We are taking decisions with 70% certainty,” he said. “Fast, because 90% or 100% certainty means you are late. And late in consumer goods is a very bad word.”
That philosophy mirrors a mindset often associated with the tech industry — particularly at companies like Amazon, where CEO Andy Jassy has been vocal about building what he calls “the world’s largest startup.” Like Jassy, Fernandez wants Unilever to move faster, take smarter risks, and shed layers of bureaucracy that slow growth.
Incentives for High Performers
Still, Fernandez’s approach isn’t only about pressure — it’s also about rewards. Emerging talent is being actively promoted, and performance incentives have been increased to as much as 200%. Leaders who excel won’t just be recognized, they’ll be compensated in what Fernandez called “hard currency.”
“We will build a culture in which playing to win is really recognized with very, very strong incentives for our leadership,” he said. “And we will ensure that Unilever is never again an insular company.”
By combining sharper accountability with stronger incentives, Fernandez is betting he can build a culture where ambition is rewarded and complacency is eliminated.
A Broader Trend Across Industries
Unilever’s shift reflects a broader corporate trend. CEOs across industries are demanding more from their teams in the wake of slower growth, inflationary pressures, and changing consumer behaviors. At Meta, Mark Zuckerberg famously pushed for a “year of efficiency.” At AT&T, John Stankey has pressed executives to strip out unnecessary processes. And at Amazon, the company even created a “bureaucracy mailbox” so employees could flag needless rules — resulting in hundreds of changes.
For Unilever, the challenge is particularly stark. With iconic brands spanning personal care, food, and household goods, the company must stay nimble to compete in a crowded global marketplace. Fernandez’s message is clear: mediocrity has no place in Unilever’s future.
