Unilever, the global consumer goods conglomerate, has revealed plans to separate its ice cream unit into an independent business entity as part of a sweeping cost-saving initiative. The restructuring strategy, aimed at accelerating growth and improving margins, will involve significant job cuts totaling around 7,500 positions, primarily in office-based roles. Anticipated savings from these measures are projected to reach approximately $869 million over the next three years, constituting around 1.2% of the company’s turnover.
CEO Hein Schumacher, recognizing Unilever’s recent performance challenges, has outlined a strategic roadmap to streamline operations and prioritize key brands that drive the majority of sales. The decision to spin off the ice cream unit reflects this vision, enabling Unilever to concentrate its efforts on a select portfolio of high-impact brands with robust market positions and complementary business models. Schumacher has reaffirmed the company’s commitment to conducting the restructuring process with sensitivity and respect for affected employees, emphasizing transparent communication and consultation throughout.
Unilever’s Growth Action Plan (GAP), launched in October 2023, is designed to optimize the company’s portfolio, boost productivity, and foster a culture of performance excellence. The separation of the ice cream business is expected to expedite the implementation of GAP, empowering Unilever to allocate resources more efficiently and pursue strategic growth initiatives with greater agility. Moreover, the company will continue to refine its brand portfolio across its four Business Groups, prioritizing globally recognized brands with substantial growth potential.
