In the memo, sent to staff late last week and previously unreported, Unilever said the freeze would take effect immediately and was made with an ​eye on the “significant challenges” from the month-old Iran war.

Firms globally, from airlines to retail, are scrambling to buttress themselves ​from the effects of the Iran war, which has snarled global trade flows and ⁠resulted in the worst-ever disruption of oil-and-gas supplies in history.

The rapid surge in energy costs is already ​surfacing in other markets, slowing production in industries like chemicals and plastics.

“Macro economic and geopolitical realities, especially in the Middle ​East conflict… bring some significant challenges for the coming few months,” Fabian Garcia, head of Unilever’s personal care business, wrote in the memo sent to staff.

“With this in mind, the Unilever Leadership Executive team has agreed to a global recruitment freeze at ​all levels. This will be effective immediately and last for a minimum of three months.”

The London-based consumer products ​giant owns some of the world’s most prominent brands. While it produces most of its goods where it sells them, ‌it buys ⁠chemicals, food, packaging and other raw materials that are energy-intensive to create.

Unilever, in a statement, said that due to the “uncertain external environment, we have decided to put in place a temporary pause on our recruitment,” adding that it will “always adjust our plans as necessary.”

Cost-cutting already in place

The freeze comes on top of an existing ​cost-cutting program Unilever has had ​in place since 2024, ⁠meant to save around 800 million euros ($916.72 million) in costs over the next three years.

The changes Unilever proposed then were expected to affect around 7,500 jobs ​globally, mostly office-based.

The firm’s current headcount of 96,000 is down from the roughly ​149,000 people it ⁠employed in 2020.

The company has struggled to grow sales volumes across its businesses in the wake of the COVID-19 pandemic.

It is now in talks to sell its food business to smaller rival McCormick & Company, it said ⁠on March ​20.

Under the proposed combination, which would mark a major shake-up under CEO ​Fernando Fernandez, the British group’s shareholders would likely keep a majority stake in the new entity, Reuters reported late last week.