Unilever to spin off ice cream unit and cut 7,500 jobs

Unilever intends to sever 7,500 jobs and spin off its ice cream division, which is home to well-known brands like Magnum and Ben & Jerry's, into a separate company.

According to the London-listed company, the spin-off will start right away and be finished by the end of 2025.

According to a statement, Unilever hopes to achieve mid-single digit underlying sales growth and a slight improvement in margins following the split.

The business also started a program that should save about 800 million euros ($869 million) in overall costs over the following three years. Approximately 7,500 primarily office-based jobs would be affected by the planned changes internationally, and the overall cost of restructuring is now projected to be 1.2% of its turnover during that time.

In October, CEO Hein Schumacher announced steps to streamline the company after acknowledging that Unilever had not done well in the previous years. The group's brand portfolio grew to over 400 under his predecessor, Alan Jope, who faced criticism for diverting management's attention from its top performers.

Schumacher had stated that the company would not make any significant or game-changing acquisitions after taking over in July, would instead concentrate on 30 core brands that account for 70% of sales, and would work to increase its gross margin.

Schumacher made it clear to reporters last month that he would not hesitate to reduce Unilever's 127,000 employees.

According to Schumacher, the adjustments they made on Tuesday will enable them to move that plan along more quickly.

In consultation with employee representatives and with consideration for their affected population, he continued, they were dedicated to implementing their productivity program.