Unilever enforces global hiring pause due to 'significant challenges' amid Middle East conflict

Global consumer goods giant Unilever is enforcing an immediate hiring pause as the firm tackles "significant challenges" amid the Middle East conflict.

Unilever, the parent company of brands like Dove, Axe, Comfort and Hellman's, said its hiring freeze will affect staff across all levels and will last at least three months, according to a memo seen by Reuters and sent to staff last week. The Reuters report was published on Monday.

"Macro economic and geopolitical realities, especially in the Middle ​East conflict... bring some significant challenges for the coming few months," Fabian Garcia, president of Unilever's personal care unit, said in the memo.

In a statement to CNBC, Unilever said, "Reflecting the uncertain external environment, we have decided to put in place a temporary pause on our recruitment. We remain an agile business and will always adjust our plans as necessary."

The firm currently employs 96,000 employees and operates in 190 countries. Its core business groups include beauty & wellbeing, personal care, home care, and food.

Unilever had already committed in 2024 to 800 million euros (roughly $918 million) in cost savings, which would see the reduction of 7,500 office-based roles. The company had delivered 670 million euros in savings by the end of 2025 and expects a further 130 million euros in savings in 2026, according to its latest financial report.

The consumer goods sector is amongst several to be impacted by the U.S.-Iran war, which began on Feb. 28 and sent oil prices soaring to over $100 a barrel, raising concerns about the price of petrol and broader inflation across food, transport, and household goods.

Airlines were among the most immediately impacted by soaring jet fuel prices, which were up 103% compared to a month ago, according to data from the week ending March 27, via the International Air Transport Association.

Retail companies are also impacted on various levels from disruption to supply chains, sending costs higher, as well as inflationary pressures hurting consumer spending on discretionary items.

British firms Next and H&M warned of increased prices last week if the instability in the Middle East region continues over the next few months.

Global food prices are another area that could see an increase, as the war disrupts fertilizer shipments and pushes prices higher. Over a third of globally traded fertilizer passes through the Strait of Hormuz.

This would make it more expensive for farmers to grow crops during the crucial spring period. As a result, economists told CNBC that food prices could rise in the coming months, adding even more inflation pressure to consumers.