Jobs cut as Unilever awards finance outsourcing contract
IBM wins lucrative financial transaction outsourcing deal from retailer, but 750 jobs to go
Unilever has awarded a multi-million pound, seven year, deal for financial
transactional services outsourcing to IBM, resulting in the loss of 750 jobs.
The agreement, which covers more than 20 European countries, aims to
streamline the company’s organsiation to drive competitiveness and growth.
IBM will provide financial services including purchase-to-pay, general
accounting and bill-to-cash that will be delivered from IBM centres in Portugal,
Poland and India.
Unilever has predicted ‘significant cost savings’ from the project, which
will contribute to towards its annual 700m euro savings programme.
The project will be implemented over a two-year period, starting in the new
year, with 750 jobs disappearing across Europe over the same period.
‘We will follow all appropriate consultation processes. When jobs are
affected we will do our best to find them alternative employment,’ said Kees van
der Graaf, president of Unilever Europe.
Tony Cronin, general manager, business transformation outsourcing, IBM, said:
‘The agreement will create long-term economic benefits for Unilever.’