Hindustan Unilever (HUL) reduced both its permanent employee and worker strength during FY26 as the Indian fast-moving consumer goods company navigated a challenging demand environment marked by slower consumption growth.
According to the company’s latest annual report, its permanent workforce declined by 8.6 per cent to 7,499 employees as of 31 March, 2026, compared to 8,202 employees a year earlier. The number of workers also fell by 5.3 per cent, dropping to 17,490 from 18,465 in the previous fiscal year.
As reported by _The Economic Times_, the workforce reduction comes at a time when consumer goods companies are facing pressure to improve efficiency and safeguard profitability amid muted consumer spending. Despite the difficult market conditions, HUL reported sales growth of 5 per cent in FY26, while profit after tax from continuing operations remained largely unchanged from the previous year.
The company said it focused on balancing cost discipline with growth investments during the year. Its strategy centred on sharper portfolio choices, prudent capital allocation and a stronger emphasis on volume-led growth. HUL also increased investments in premium products, science-backed innovation and brands designed to cater to evolving consumer preferences.
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. It also accelerated its presence in emerging retail channels through technology-led initiatives and partnerships while directing more resources toward high-growth categories.
Even as headcount declined, employee compensation saw an increase. Median remuneration for employees rose by 6.1 per cent during the fiscal year. Nair received remuneration of Rs 18.19 crore in FY26.
Some of HUL’s growth businesses delivered strong performance. Lakme Lever’s salon business recorded an 11 per cent increase in revenue, while Zywie Ventures, which owns plant-based nutrition brand Oziva, reported an 80 per cent jump in sales.
