Unilever, the owner of Marmite and Dove soap, is set to cut 7,500 jobs globally as part of a three-year cost-saving plan. Additionally, the company plans to separate its ice cream business, which includes popular brands like Wall’s, Ben & Jerry’s, and Magnum. This restructuring aims to streamline operations and focus on core products, with the spin-off expected to be completed by the end of 2025.
The job cuts, which primarily target office staff, are part of Unilever’s efforts to save around €800m over the next three years. While the ice cream division generated €7.9bn in sales last year, the company believes that separating it will simplify operations and create a more focused business model. Unilever’s chairman, Ian Meakins, envisions a stronger, more efficient company as a result of these changes, with the ice cream business poised for growth as a standalone entity.
Investors reacted positively to the news, with Unilever’s shares rising by 5% following the announcement. Analysts suggest that the underperforming ice cream unit is likely to be spun off through a demerger, allowing shareholders to receive shares in the newly listed entity. While other options like a direct sale are not ruled out, the focus remains on creating a world-leading ice cream business with promising growth prospects in the future.