Unilever to spin off ice cream unit, cut 7,500 jobs

Unilever ice cream spin-off: Unilever, the parent company behind beloved ice cream brands like Magnum and Ben & Jerry's, has unveiled plans to spin off its ice cream unit into a standalone business. This move comes alongside the company's move to slash 7,500 jobs globally.

The London-listed consumer goods giant announced on Tuesday that the spin-off process would commence immediately, with a targeted completion date set for the end of 2025. Alongside this strategic separation, Unilever aims to achieve mid-single-digit underlying sales growth and modest margin improvement post-split.

Furthermore, Unilever has launched a comprehensive program anticipated to yield total cost savings of approximately €800 million over the next three years. As part of this initiative, around 7,500 office-based roles worldwide will be affected. The restructuring costs associated with these changes are expected to amount to approximately 1.2 per cent of the company's turnover during the specified period.

The decision to streamline operations and divest its ice cream business follows CEO Hein Schumacher's commitment to simplifying Unilever's structure. Schumacher, who assumed the role in July, has emphasised focusing on the company's 30 key brands, which collectively contribute to 70 per cent of its sales. This strategic realignment aims to enhance gross margins and avoid large-scale acquisitions.

In a statement, Schumacher highlighted the necessity of these changes to expedite Unilever's strategic plan. He affirmed the company's commitment to executing the productivity program in collaboration with employee representatives while prioritising the well-being of those affected by the restructuring.

(With Reuters inputs.)