Unilever says cutting 7500 jobs from the company around the world and separating the ice cream business (including Ben & Jerry’s and Magnum) will create a “simpler, more focused company”.
The job cuts equate to around six per cent of its workforce and will mainly be in office-based roles. The restructure is expected to cost around 1.2 per cent of the group’s turnover for the next three years.
Unilever owns five of the top 10 selling global ice cream brands with exposure in in-home and out-of-home segments, the company said.
The ice cream business unit’s turnover in FY23 was around $13 billion (7.9 billion euros) but that was the lowest amount of group turnover in the business, and it also had the lowest growth rate.
Personal Care had 8.9 per cent sales growth and accounted for 23 per cent of group turnover. Beauty & Wellbeing had 8.3 per cent sales growth and 21 per cent of group turnover, Home Care – 5.9 per cent and 21 per cent, and Nutrition 7.7 per cent and 22 per cent of group turnover.
In October last year, CEO Hein Schumacher announced a Growth Action Plan to turn around underperformance by the company.
The first point in the 10-point plan was to focus on its top thirty brands, which generate 70 per cent of its turnover.
Schumacher said the spin off and job losses will save around $1.3 billion over the next three years.
The ice cream business separation is expected to be completed by the end of 2025.
mtc
