Unilever to cut 7,500 jobs, spin off its ice cream business

Unilever is set to cut no fewer than 7,500 jobs and split its ice cream business, a company report says.

This move, it says, is aimed at focusing more on its growing areas of business, making operations simpler, and ultimately making more money.

CEO Hein Schumacher took over Unilever last July and quickly made changes to the company.

Unilever, known for products like Hellmann’s mayonnaise and Magnum ice cream bars, believes it will benefit from focusing on its strongest brands in popular categories.

Schumacher emphasized the importance of simplifying operations to unlock the company’s potential.

After restructuring, Unilever will have four main business segments: beauty and wellbeing, personal care, home care, and nutrition. The ice cream division, which includes brands like Good Humor and Talenti, will likely become a separate company or could be sold.

Despite its long history and significant revenue contribution (7.9 billion euros in 2023), the ice cream division saw slower growth compared to other segments.

Unilever has sold ice cream since 1922. The division, which generated 7.9 billion euros ($8.6 billion) in revenue in 2023, was responsible for about 13% of Unilever’s 59.6 billion euros ($64.7 billion) in total revenue last year.

The division had five of the top 10 selling global ice cream brands in terms of sales, the company said.

Separating it would also distance Unilever from Ben & Jerry’s, a brand known for its social activism that has sometimes clashed with the company’s decisions.

Unilever stated that the job cuts will primarily affect office-based positions, with plans to increase investment in technology to streamline operations.

This restructuring follows a major overhaul two years ago, when Unilever laid off thousands of managers globally and reorganized its business around five distinct product groups.

Unilever has demonstrated a willingness to sell off parts of its business, such as the divestment of Lipton and other tea brands for $5 billion in 2021, as well as the sale of Dollar Shave Club last year.