Unilever cuts 7,500 jobs and announces plan to spin off its ice cream unit, which includes popular brands like Magnum and Ben & Jerry's
Unilever announced its plan on Tuesday to separate its ice cream business, which includes well-known brands like Magnum and Ben & Jerry's, into a standalone entity. As per reports, the company is also aiming to implement a new cost-saving program, that will involve cutting 7,500 jobs.
Unilever said that the spinoff process will commence immediately and is expected to conclude by the end of 2025. The consumer goods company aims to achieve mid-single-digit underlying sales growth and slight margin enhancement post-separation.
Ian Meakins, Chair of Unilever, said, “The Board is determined to transform Unilever into a higher-growth, higher-margin business that will deliver consistently for all stakeholders."
The company has initiated a program aimed at cost savings of around 800 million euros over the next three years. These proposed measures are expected to impact employees worldwide, primarily office roles, with anticipated restructuring expenses amounting to around 1.2 per cent of its turnover during this timeframe.
“The separation of Ice Cream and the delivery of the productivity programme will help create a simpler, more focused, and higher performing Unilever. It will also create a world-leading ice cream business, with strong growth prospects and an exciting future as a standalone business,” he added.
About 5.9 per cent of Unilever's workforce will be affected by the cuts. The new CEO, Schumacher aims to simplify the company's operations after the recent underperformance of the consumer goods giant. As per a report by Reuters, previous CEO Alan Jope was criticized for expanding Unilever's brand portfolio to about 400, which caused management to lose focus on top-performing brands.