The number of employees on the rolls of FMCG major Hindustan Unilever Limited (HUL) declined 10.7% to 5,898 in FY26, according to the latest annual report of the company. The leading FMCG maker had 6,604 permanent employees on its rolls as on March 31, 2025, as reported by the company. This workforce reduction comes as the consumer goods giant faces sluggish demand and aims to improve productivity through strategic workforce optimization.
The percentage increase in the median remuneration of employees for the financial year was 6.08%, according to HUL's annual report. This represents a significant improvement in employee compensation despite the overall workforce reduction, with the company projecting continued growth in employee compensation going forward. The company is also investing in artificial intelligence capabilities, with recent developments showing the launch of a new fragrance research center at IIT Bombay and a new Unilever Fragrance Hub in Mumbai to strengthen internal fragrance development capabilities.
The company is investing ₹2,000 crore to expand manufacturing capacity in fast-growing premium categories across beauty & wellbeing and home care liquids, as reported by HUL. This substantial investment reflects the company's strategic focus on expanding its manufacturing footprint in high-growth segments, positioning HUL to serve consumers better despite current economic challenges. The company is also launching a new fragrance research center at IIT Bombay as part of a major global investment using artificial intelligence to create new scents, strengthening its internal capabilities alongside partnerships with fragrance houses.
Despite facing current economic hurdles, Hindustan Unilever Ltd remains optimistic about India's future growth prospects. The company is focusing on increasing consumption, premium products, and digital advancements to drive future growth. India's young population, growing per capita consumption, and digital transformation are identified as key drivers for this positive outlook, supporting the company's strategic investments in business expansion. The company has also opened a new Unilever Fragrance Hub in Mumbai that will use science and AI to create new fragrances, highlighting the growing importance of fragrance in consumer choices.
Besides focusing on workforce optimization, HUL is taking efforts to build a more equitable and inclusive workplace, achieving what it describes as 'meaningful progress', according to the company's annual report. Women currently represent 44% of the managerial workforce, with the company committed to strengthening this further as part of its broader diversity and inclusion strategy. The company's focus on workplace inclusivity aligns with broader industry trends, as recent data shows companies significantly boosted diversity hiring with a 21% increase despite overall job market cautiousness.
