London, England – Unilever, the company behind brands like Marmite and Dove soap, has announced plans to cut approximately 7,500 jobs worldwide as part of a three-year cost-saving strategy. In addition to the job cuts, Unilever will also be separating its ice cream business, which includes popular brands like Wall’s, Ben & Jerry’s, and Magnum.
The decision to split off the ice cream division comes as the company aims to streamline its operations and focus on core areas of growth. Unilever expects the spin-off to be completed by the end of 2025, with the goal of enhancing overall efficiency and performance.
The job cuts are expected to primarily impact office staff and represent over 5% of Unilever’s global workforce. The company anticipates savings of around €800m over the next three years as a result of these measures.
Unilever employs 6,000 staff in the UK, with operations including the production of ice cream in north-east Gloucestershire, Marmite and Bovril in Burton-on-Trent, and Pot Noodles in Newport. The ice cream division, which includes brands like Viennetta, Carte d’Or, Cornetto, and Breyers, generated €7.9bn in global sales last year.
According to Unilever Chairman Ian Meakins, the decision to split off the ice cream business will create a more focused and high-performing company. The move is expected to lead to the formation of a leading standalone ice cream business with strong growth potential.
Following the announcement, Unilever’s shares rose by 5%, signaling investor confidence in the strategic shift. Analysts have noted that the ice cream unit had been underperforming, making the decision to separate it from the rest of Unilever’s consumer product lines a strategic one.
Overall, the separation of the ice cream business is seen as a step towards simplifying Unilever’s operations and creating a more agile and efficient company. With the potential for a demerger or other strategic options on the table, the company aims to unlock value for shareholders and position the ice cream business for future success.