Unilever to restructure, ice cream unit separated, 7,500 jobs cut

Unilever Plc, under the leadership of Chief Executive Officer Hein Schumacher, has unveiled plans to separate its ice cream business, which includes renowned brands such as Ben & Jerry's, as part of a broader restructuring initiative aimed at enhancing growth prospects.

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This restructuring will entail cutting 7,500 jobs, primarily affecting office-based roles, in a bid to achieve ₹800 million in cost savings over the next three years.

The company stated that various options are under consideration for the separation, with a demerger being the most probable choice, leading to the creation of a new listed business. Unilever's ice cream division reported sales of ₹7.9 billion ($8.6 billion) in 2023.

This strategic move is aligned with Schumacher's efforts to streamline Unilever's operations, focusing on four core businesses: beauty and wellbeing, personal care, home care, and nutrition.

The decision to separate the ice cream unit is expected to alleviate challenges associated with controversies over political stances taken by Ben & Jerry's, a subsidiary of Unilever.

In December 2022, Unilever settled a legal dispute with Ben & Jerry's independent board after the brand objected to its products being sold in the Israeli-occupied West Bank. Furthermore, earlier in the same year, Unilever criticized Ben & Jerry's for a social media post that condemned US President Joe Biden's actions, which Unilever perceived as fanning "the flames of war" prior to Russia's invasion of Ukraine.