Hindustan Unilever Cuts Workforce by Nearly 9% in FY26 Amid Slow Demand

Last Updated:June 03, 2026, 5:20 PM IST

According to the company’s latest annual report, HUL’s permanent workforce declined by 8.6 per cent to 7,499 employees as of March 31, 2026, from 8,202 employees a year ago.

The number of HUL workers fell by 5.3 per cent to 17,490 from 18,465 in FY25.

FMCG giant Hindustan Unilever Ltd (HUL) reduced both its permanent employee and worker strength during FY26 as India’s largest consumer goods company navigated a challenging consumption environment marked by sluggish demand growth.

According to the company’s latest annual report, HUL’s permanent workforce declined by 8.6 per cent to 7,499 employees as of March 31, 2026, from 8,202 employees a year ago. The number of workers also fell by 5.3 per cent to 17,490 from 18,465 in FY25.

The workforce rationalisation comes at a time when consumer goods companies are increasingly focusing on productivity improvements and cost efficiencies to protect margins amid slower volume growth.

HUL Reports 5% Sales Growth, Flat Profit in FY26

HUL reported a 5 per cent increase in sales during FY26, while profit after tax from continuing operations remained largely unchanged compared to the previous year.

The company said operating in a subdued demand environment required disciplined capital allocation, sharper portfolio choices and greater agility in execution.

“Operating successfully in this environment required a careful balance of discipline in making clear portfolio choices, allocating capital prudently, and agility in execution,” Managing Director and CEO Priya Nair said in the annual report.

Priya Nair Emphasises Volume-Led Revenue Growth

Nair, who took charge as HUL’s Managing Director and CEO on August 1, 2025, succeeding Rohit Jawa, said the company sharpened its priorities during the year with a strong focus on driving volume-led growth.

“We crafted sharper priorities during the year, with a clear focus on volume-led revenue growth,” she said.

According to Nair, HUL strengthened its consumer-segmentation strategy across product development, pricing and distribution. The company also increased investments in premium brands, science-led innovation, technology-enabled retail channels and high-growth categories where it sees significant expansion opportunities.

Median Employee Pay Rises 6.1%

Despite the reduction in workforce, HUL’s median employee remuneration increased by 6.1 per cent during FY26. Nair received total remuneration of Rs 18.19 crore during the fiscal year, according to disclosures in the annual report.

Lakme Lever and Oziva Deliver Strong Growth

Among HUL’s emerging growth businesses, its salon services arm Lakme Lever posted an 11 per cent increase in revenue to Rs 386 crore during FY26.

Meanwhile, plant-based nutrition brand Oziva, owned by Zywie Ventures, recorded robust growth, with sales rising 80 per cent year-on-year to Rs 462 crore.

The strong performance of these businesses highlights HUL’s increasing focus on premiumisation, wellness products and high-growth consumer segments as it seeks to accelerate growth amid a broader slowdown in household consumption.

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