Unilever Scoops Up Change, Separate ice cream business, cut 7,500 jobs worldwide

Unilever Plc announced a major shakeup today, outlining plans to separate its ice cream business and launch a company-wide productivity program to streamline operations and boost growth.

The decision to spin-off ice cream, which includes popular brands like Ben & Jerry's and Magnum, reflects Unilever's strategic shift towards focusing on a core portfolio of "unmissably superior brands" across Beauty & Wellbeing, Personal Care, Home Care, and Nutrition categories. These categories boast strong market positions and more complementary operating models, allowing Unilever to leverage its strengths in innovation, marketing, and distribution.

Unilever believes the ice cream business, with its distinct supply chain, seasonal trends, and capital-intensive needs, will thrive under a separate ownership structure. The new standalone ice cream company, expected to be operational by the end of 2025, will hold a prominent position in the global ice cream market with a turnover of €7.9 billion in 2023.

In addition to the ice cream spin-off, Unilever is implementing a comprehensive productivity program aimed at achieving a leaner and more accountable organization. This program is expected to deliver €800 million in cost savings over the next three years, exceeding potential disruptions caused by the ice cream separation. The savings will be directed towards brand and R&D investments, ultimately propelling margin improvement.

Unilever anticipates a workforce reduction of around 7,500 primarily office-based roles as part of the restructuring. Consultations with employee representatives are underway.

Following the separation and program implementation, Unilever expects to emerge as a structurally higher-margin company with a focus on mid-single digit underlying sales growth and improved profitability.

Ian Meakins, Chair of Unilever Says "The Board is committed to transforming Unilever into a higher-growth, higher-margin business... The separation of Ice Cream and the delivery of the productivity programme will create a simpler, more focused Unilever and a world-leading ice cream business."

Hein Schumacher, CEO of Unilever says "The changes will help us accelerate our Growth Action Plan... Simplifying our portfolio and driving greater productivity will allow us to unlock the potential of this business and position Unilever as a world leader in consumer goods."