Unilever plans to spin off Ice Cream business, sack 7,500 to cut costs
As part of a wider restructuring effort to accelerate growth, CEO Hein Schumacher is streamlining the UK consumer-goods giant
Unilever Plc plans to spin off ice cream business, which houses renowned brands like Ben & Jerry’s and Magnum, into standalone business as part of a cost-cutting program that would also lead to 7,500 job losses.
The separation process will commence immediately and it is expected to be completed by the end of 2025.
As part of a wider restructuring effort to accelerate growth, CEO Hein Schumacher is streamlining the UK consumer-goods giant.
The company stated that the job reductions are key for its Growth Action Plan aimed at achieving €800 million in cost savings within the next three years.
The Unilever Board believes that the company's focus should be on a portfolio of unmissably superior brands in highly-attractive categories with complementary operating models.
Given the distinct operating model of its Ice Cream business, the Board has decided that separating Ice Cream business will optimise future growth for both Ice Cream and Unilever, the company said in a release.
The company stated that various possibilities will be explored for the separation, with a demerger leading to the creation of a new publicly listed company being the most probable choice.
Unilever, which also boasts brands like Hellmann’s mayonnaise and Domestos cleaners, reported that its ice cream business generated sales of €7.9 billion ($8.6 billion) in 2023.
Expanding upon the initial progress of the GAP initiative, Unilever said it has identified further opportunities for efficiency enhancement that can now be expedited.
