Unilever to split off ice cream business, cut 7,500 jobs as Hein Schumacher eyes transformation
Invezz
Published Mar 19, 2024 13:35
Updated Mar 19, 2024 14:11
Unilever to split off ice cream business, cut 7,500 jobs as Hein Schumacher eyes transformation
Unilever (LON:ULVR) is set to cut 7,500 jobs globally as part of an ambitious three-year cost-saving initiative. The group will divide its ice cream business, including Wall’s, Ben & Jerry’s, and Magnum brands.
Global impact of the job cuts/h2
The Unilever group employs 128,000 people globally, with 6,000 in the UK. These job cuts will affect more than 5% of its total workforce.
Hans Schumacher, the company’s chief executive, states that the London head office of the company will see several job cuts, along with business units in other countries.
Unilever has revealed a productivity programme aiming to achieve €800 million in cost savings over a span of 3 years, along with intentions of spinning off its ice cream business. These layoffs will commence immediately, and the end of 2025 should see its completion.
Separation of the ice cream businesses/h2
Ian Merkin, the company’s chairman, says that the separation of the ice cream business, coupled with the productivity programme plan, will optimize Unilever’s performance.
Unilever’s other ice cream brands, such as Viennetta, Carte d’Or, Cornetto, and Breyers, saw global sales of €7.9 billion in 2023.
Changes in Unilever’s shares/h2
Unilever’s stocks saw a 5% surge post this announcement, with the company emerging as a top gainer on the FTSE 100 Index.
The unit is poised for a probable demerger, which grants its existing shareholders stakes in a newly listed entity.
Post this split-off, Unilever will be left with four divisions: beauty and wellbeing, personal care, home care, and nutrition.
This article first appeared on Invezz.com
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