Unilever announces 7,500 global job cuts, spin-off of ice cream division

Unilever’s shares surged over 5% on Tuesday morning following the announcement, propelling it to the top of the FTSE 100 risers

In a bid to restructure and generate savings of about 800 million euros (684 million pounds) over the next three years, consumer goods giant Unilever has unveiled plans to slash 7,500 jobs worldwide and spin off its ice cream division.

The company, renowned for its diverse portfolio of brands such as Marmite, Hellmann’s mayonnaise, Dove soap, Lynx deodorant, and Domestos bleach, currently employs 128,000 individuals globally, including 6,000 in the U.K.

Unilever’s Chief Executive, Hein Schumacher, assured that employees would be consulted regarding the job cuts. Schumacher specified reductions would occur at Unilever’s London headquarters and in various business units across other countries.

The proposed productivity program aims to deliver approximately 800 million euros in cost savings over the next three years and includes plans to spin off Unilever’s ice cream business.

Unilever’s 4 core divisions: beauty and wellbeing, personal care, home care, and nutrition

The company anticipates completing the spin-off by the end of 2025.

This division boasts five of the world’s top-selling 10 ice-cream brands, including Wall’s, Magnum, and Ben & Jerry’s, alongside other popular products like Cornetto, Viennetta, Carte d’Or and Breyers, particularly prominent in the U.S.

The demerger of the ice cream division, which generates annual revenues of 7.9 billion euros and contributes 16% to group sales, appears to be the most probable outcome.

Schumacher highlighted the distinctive nature of the ice cream business due to its frozen supply chain, seasonality and significant capital requirements, emphasizing the rationale behind the separation.

Upon completion of the spin-off, Unilever will streamline its operations to focus on four core divisions: beauty and wellbeing, personal care, home care and nutrition.

Ian Meakins, Unilever’s Chair, expressed confidence that separating the ice cream division from the productivity program would result in a simpler, more focused, and high-performing company.

He anticipated the emergence of a world-leading ice cream business with robust growth prospects.

Unilever faces legal challenges Ben & Jerry’s controversies

In 2023, Unilever faced a lawsuit in the U.S. alleging it misled investors by not promptly disclosing Ben & Jerry’s decision to cease ice cream sales in Israeli-occupied Palestinian territories, a case that was ultimately dismissed.

Earlier that year, the company also encountered backlash over Ben & Jerry’s advocacy for the return of “stolen” indigenous land in the U.S.

Source: Newsroom