Unilever to Cut 7,500 Jobs in Ice Cream Unit Spin-Off

19 Mar 2024 , 05:11 PM

The massive consumer goods company Unilever Plc has revealed a comprehensive reorganisation plan that calls for the separation of its $8.6 billion ice cream division and the elimination of 7,500 jobs globally. According to a Bloomberg article, the action, which aims to streamline operations and spur growth, is a major change for the UK-based corporation led by Chief Executive Officer Hein Schumacher.

The report also stated that Unilever, whose portfolio includes brands like Magnum, Ben & Jerry’s, Hellmann’s mayonnaise, and Domestos cleaners, stated that a variety of options will be considered for the separation of the ice cream division. The most likely scenario, according to the report, is a demerger that creates a new publicly listed company.

The ice cream industry, which brought in €7.9 billion ($8.6 billion) in sales in 2023, has long been a point of contention for Unilever because of Ben & Jerry’s political positions. According to the article, the corporation and Ben & Jerry’s independent board reached a settlement in December 2022 about the brand’s licencing in the Israeli-occupied West Bank.

Unilever has revealed plans to sever 7,500 positions, mostly in office-based employment, in addition to the ice cream division. The story went on to say that the job losses are a part of a larger cost-saving plan that aims to save €800 million over the next three years.

Activist investor Nelson Peltz joined Unilever’s board last year, and Schumacher assumed leadership of the consumer goods company with the goal of reviving growth. According to Bloomberg, Unilever will be reorganised so that it can concentrate on its four main businesses: nutrition, home care, personal care, and beauty and wellbeing.

According to Unilever, the ice cream unit separation is anticipated to start right away and be finished by the end of 2024. In the past, rival Nestle SA divided its ice cream division through a joint venture with private equity firm PAI Partners.

Unilever’s sales jumped by 4.7% in the last quarter of 2023, just exceeding expert projections, as the company sold more products than it had in 2021 for the first time.

Schumacher hopes to simplify Unilever’s operations and set the company up for future success in the face of growing competition and shifting consumer tastes in the global consumer goods industry by separating the ice cream division and making employment cuts.

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