The consumer goods company Unilever is imposing a global hiring freeze. The reason: the economic situation as a result of the Iran war. This shows how geopolitical shocks have a direct impact on the human resources strategies of global corporations. Matthias Kempf, President of the Federal Association of Human Resources Managers, knows what HR specifically needs to pay attention to in the case of hiring freezes.
The global hiring freeze applies at all hierarchical levels. According to an internal letter available to the Reuters news agency, the stop will last at least three months. Fabian Garcia, head of the personal care division, cites the economic consequences of the Iran war and the associated disruptions in world trade as the reason. The group’s well-known brands include Knorr, Pfanni, Axe, Rexona and Ben & Jerry’s.
Hiring freeze at Unilever: savings program is already underway
The step complements a savings program that is already underway: Since 2024, the British consumer goods company has been planning to save around 800 million euros within three years and cut around 7,500 jobs, Spiegel reported. The workforce has already fallen from around 149,000 employees in 2020 to 96,000 currently. At the same time, Unilever negotiated the sale of its food division to competitor McCormick. The deal with the US spice manufacturer was recently confirmed in a press release.
HR needs to take this into account in the case of a hiring freeze
From the perspective of Matthias Kempf, President of the Federal Association of Human Resources Managers (BPM), the most important thing in the event of a comprehensive hiring freeze is to manage the measure professionally both internally and externally. Despite short-term measures, long-term personnel planning should not be lost sight of. HR departments should specifically pay attention to these points:
- Clear, early and honest internal communication: to reduce uncertainty and provide orientation. It is crucial to be transparent about what the hiring freeze actually means, which areas are affected and what next steps are planned so that trust is maintained. This also includes promising regular updates on further developments and possible next steps.
- Make the reasoning transparent and provide perspective: According to Kempf, HR should transparently explain why the stop is necessary. If, as in the case of Unilever, there is a temporary hiring freeze, a positive outlook also makes sense: “It is a temporary measure that will be reviewed again after the conflict has ended,” suggests Kempf.
- Appreciative and transparent treatment of candidates: In application processes that have already started, it must be clearly communicated whether the process will be continued, paused or ended. At the same time, it is important to actively maintain the talent pipeline so as not to permanently damage relationships with qualified candidates.
- Consider critical functions in a differentiated manner: In the event of a comprehensive hiring freeze, it must be examined together with the business to determine which roles are essential for ongoing operations or strategically important areas and should therefore be prioritized or excluded.
- Proactively manage the internal organization: Kempf recommends placing greater emphasis on internal mobility, clearly prioritizing tasks and redistributing resources in a targeted manner. “The aim is to cushion additional stress and keep negative effects on motivation and productivity as low as possible,” says Kempf.
- Keep an eye on long-term personnel planning: A complete hiring freeze could cause structural gaps – especially among young talent. It is therefore important to develop perspectives for the time after the crisis at an early stage and to continue to address relevant talent groups
- Involve the works council: In addition, HR should emphasize the involvement of the works council and present the situation as a joint effort. The goal of securing existing employment relationships as best as possible should also be clearly communicated.
Tonia Schöler is a volunteer at Human Resources.
