Unilever to reduce global workforce by 7.5K jobs while restructuring its ice cream division

Delhi: Unilever has announced plans to reduce its workforce by 7,500 positions worldwide and to seperate its ice-cream division as part of a restructuring aimed at achieving approximately €800 million (£684 million) in savings over the next three years.

The multinational consumer goods company, renowned for brands such as Marmite, Hellmann’s mayonnaise, Dove soap, Lynx deodorant, and Domestos bleach, currently employs 128,000 individuals globally.

Hein Schumacher, who assumed the role of chief executive in January 2023 succeeding Alan Jope, mentioned that job cuts would occur both at Unilever’s London headquarters and in various business units across different countries.

Unilever detailed a productivity initiative intended to generate cost reductions of about €800 million over the next three years and unveiled plans for the separation of its ice-cream business.

This division encompasses five of the world’s top-selling 10 ice-cream brands, including Wall’s, Magnum, and Ben and Jerry’s, along with Cornetto, Viennetta, Carte d’Or, and Breyers, prominent in the US market.

The company anticipates demerging the division, which records annual revenues of €7.9 billion and contributes 16% of total group sales, with the most likely outcome being a spinoff. However, Unilever is exploring other alternatives and aims to complete the spinoff by the conclusion of 2025.

Schumacher refrained from specifying the stock exchange where the separated ice-cream business would be listed, indicating that all possibilities are under consideration.

He highlighted the distinctive characteristics of the ice-cream segment, including its frozen supply chain, seasonal demand fluctuations, and substantial capital requirements, setting it apart from the rest of the company's operations.

Following the separation, Unilever will operate with four core divisions: beauty and wellbeing, personal care, home care, and nutrition.