Unilever PLC (UL) announced on Tuesday, 19 March 2024, that it is axing 7,500 jobs and spinning off its renowned ice cream business to curb costs and amplify profits.
Unilever cuts 7,500 jobs and spins off ice cream segment to boost profits
The company manufactures diverse consumer products, including globally well-known brands such as Ben & Jerry’s, Dove, and Horlicks.
The company said that these moves form part of its Growth Action Plan and the initiation of a major productivity programme. It further indicated that the ice cream segment’s alternative operating model justifies the planned spin-off and “best serves the growth of both ice cream and Unilever”.
Apart from Ben & Jerry’s, Unilever’s ice cream business also includes household names such as Wall’s and Magnum. The company believes that this division would profit from separate ownership and indicated that the planned severance should be completed by the end of 2025.
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According to an Associated Press report, the London-based company presently has 128,000 employees on its payroll. The cuts, which form part of the new productivity programme, would mostly be administrative functions throughout its locations worldwide.
Unilever aims to employ technologies to boost efficiency and eliminate duplication. The firm reportedly expects these initiatives to save approximately €800m ($867m) over the next three years.
Unilever’s chairperson, Ian Meakins, said:
The separation of Ice Cream and the delivery of the productivity programme will help create a simpler, more focused, and higher performing Unilever. It will also create a world-leading ice cream business, with strong growth prospects and an exciting future.
