HUL Sees Significant Employee Reduction of 10.7% in FY26 Amid Demand Slowdown
India's largest fast-moving consumer goods company, Hindustan Unilever Limited (HUL), trimmed both its permanent workforce and factory worker headcount significantly during FY26, as it navigated a challenging demand environment marked by sluggish consumer spending and flat profitability.
Workforce Numbers Tell the Story
According to the company's latest annual report, HUL's permanent workforce declined by 8.6% to 7,499 employees as of March 31, 2026, compared to 8,202 employees a year earlier. The number of workers also fell by 5.3%, dropping to 17,490 from 18,465 in the previous fiscal year.
Despite the difficult market conditions, HUL reported sales growth of 5% in FY26, while profit after tax from continuing operations remained largely unchanged from the previous year.
Pay Rises Even as Headcount Falls
In a notable contrast, median employee remuneration at the company rose 6.1% during the year — signalling a strategic shift toward leaner, better-compensated teams rather than large headcounts.
New Leadership, New Priorities
Under the leadership of Managing Director Priya Nair, who took charge in August 2025, the company expanded its consumer-segmentation approach across product development, pricing and distribution. Nair became the first woman to be named CEO in HUL's 92-year-long history.
Nair said the company focused on volume-led revenue growth and increased resource allocation toward high-growth categories, noting that "operating successfully in this environment required a careful balance of discipline in making clear portfolio choices, allocating capital prudently, and agility in execution.
Growth Pockets Despite the Pressure
HUL's salon business Lakme Lever posted sales growth of 11% at ₹386 crore, while Zywie Ventures, which owns the brand Oziva, recorded sales growth of 80% to ₹462 crore during the year.
Since assuming the helm, Nair has moved to reorganize the company's internal structure, aiming to reduce bureaucratic layers and refocus on high-margin segments, leaning heavily into premiumisation and scientific product innovation, particularly within the beauty and wellbeing categories