Unilever is going to cut 7,500 jobs worldwide and focus on the ice cream business
Unilever has decided to spin off its ice cream business to cut costs. About 7,500 employees are slated to be laid off because of the decision. The divestment process will begin immediately and is expected to be completed by the end of 2025.
Unilever will spin off its ice cream business to cut costs. Due to this, about seven and a half thousand people are feared to be unemployed.
Unilever Plc has divested its ice cream business, which includes well-known brands such as Ben & Jerry’s and Magnum, in a cost-cutting effort. The company plans to spin off the ice cream business as a standalone business, which will also result in 7,500 job losses.
Unilever plans to make changes to its ice cream unit, which is home to popular brands such as Magnum and Ben & Jerry’s, into a standalone business, as the consumer goods group said on Tuesday it would seek cost savings and announced a new program that could cut 7,500 jobs.
The divestment process will begin immediately and is expected to be completed by the end of 2025.
Separating ice cream and product delivery will help create a simpler, more focused, and higher-performing Unilever, according to media reports.
It will also create a global ice cream business, with strong growth potential and an exciting future as a standalone business. Job cuts are key to its growth action plan, which aims to save €800 million in costs over the next three years.
At the same time, the Unilever board believes that the company should focus on a portfolio of incredibly superior brands in the most attractive categories with complementary operating models.
Given the unique operating model of its ice cream business, the board has decided that the separation of the ice cream business will promote the future growth of both Ice Cream and Unilever, the company said.
The company said it would explore various options for a demerger, with the formation of a new publicly listed company being the most likely option.
