Unilever, the consumer goods giant, announced plans to cut 7,500 jobs and spin off its ice cream unit, which includes popular brands like Ben & Jerry’s. The goal of these moves is to reduce costs and simplify Unilever’s portfolio of brands, creating a more focused and higher performing company. The spinoff of the ice cream unit, expected to be completed by the end of 2025, is part of Unilever’s larger strategy to drive growth and unlock potential by focusing on a select group of brands.
Unilever’s CEO, Hein Schumacher, believes that these actions will save nearly $870 million in costs over the next three years, with the layoffs affecting about 6 percent of the company’s workforce. The decision to spin off the ice cream unit comes after Unilever faced challenges with declining market share and profitability in the division due to high input-cost inflation. Despite initial reservations, Unilever’s shares rose 3 percent following the announcement, signaling some investor confidence in the company’s strategy moving forward.
The remaining units of Unilever will include health and beauty brands, consumer goods, and food brands such as Dove soap, Hellmann’s mayonnaise, and Surf detergent. The decision to streamline the company’s portfolio comes as Unilever’s revenue growth has been impacted by consumer preferences for cheaper brands amid inflation. With a focus on cost-cutting and simplification, Unilever is aiming to position itself for future growth and profitability in a challenging market environment.