Unilever’s announcement is part of a growth action plan that includes cutting about 7,500 jobs worldwide and saving around 869 million USD.
The hygiene and food giant Unilever announced on Tuesday that it is spinning off its ice cream business, which includes the popular U.S. brand Ben & Jerry’s, as well as Magnum and Cornetto.
Based in the United Kingdom, the company made this announcement while revealing a growth action plan that involves cutting about 7,500 jobs globally over the next three years to save around 684 million pounds (869 million dollars).
In the statement released Tuesday morning, Unilever considers it reasonable to separate the ice cream business, which “has great potential,” as it currently includes five of the top ten best-selling brands worldwide that in 2022 had a global turnover of 7.9 billion euros (8.6 billion dollars).
The separation process will be completed by the end of 2025 and will mean that the ice cream division will have its own supply chains, factories, and logistical units, and Unilever is considering all options in this separation “to maximize shareholder benefits.”
Unilever Hopes Ice Cream Business Spin-off Will Boost Productivity
The planned job cuts will occur in the group’s offices as part of a massive restructuring program that will be developed by its new CEO, Hein Schumacher, aiming to improve the group’s performance.
Unilever, behind products such as Dove soaps, has its headquarters in the central Victoria area of London and employs 6,000 people in the United Kingdom and a global workforce of 128,000.
Its CEO, who took over last year, deemed the group’s financial results for 2023 “disappointing.”
With the planned reform, the firm appears to be planning to invest in technology to boost productivity and save costs.
“As part of the growth action plan, we are committed to doing fewer things better, with greater impact,” the executive revealed.