Unilever has unveiled plans to separate its ice cream unit, which includes popular brands like Magnum and Ben & Jerry’s, into an independent entity, alongside announcing a new cost-saving initiative impacting 7,500 jobs.
The company aims to complete the spin-off by the end of next year, as reported by Reuters.
With the implementation of the new strategy, the ice cream manufacturer anticipates saving approximately USD 869 million over the next three years. The restructuring is poised to affect around 7,500 positions, primarily office-based roles and is projected to impact about 1.2 per cent of the company’s revenue.
In October 2023, CEO Hein Schumacher acknowledged Unilever’s underperformance in recent years. Schumacher pledged to simplify operations and concentrate on 30 core brands contributing to 70 per cent of the company’s sales, steering clear of significant acquisitions. He reiterated this stance in February, affirming his commitment to streamlining Unilever’s workforce of 127,000 employees.
“The changes announced today will facilitate the acceleration of that strategy,” stated Schumacher on 19 March. “We are dedicated to executing our productivity agenda in consultation with employee representatives, ensuring due respect and consideration for those affected by these adjustments.”
