Mass layoffs loom for Unilever as it plans to spin off ice cream unit that includes Ben & Jerry’s

In a move to streamline operations and focus on core strengths, Unilever has announced plans to separate its ice cream unit, which is home to iconic brands including Ben & Jerry’s and Magnum.



Unilever’s decision to separate the ice cream unit follows a wider restructuring initiated by CEO Hein Schumacher, who assumed leadership in July 2023.



The ice cream division, which generated 7.9 billion euro in revenue in 2023, will become a standalone business entity with designs to optimize the performance of the brands.



The restructuring is expected to impact approximately 7,500 jobs globally. In a statement, the consumer products giant said its aim is to create a leaner and more efficient company “enabled by investment in technology.”



The broader restructuring effort is expected completed by the end of 2025. Unilever says it will create four distinct business divisions—Beauty & Wellbeing, Personal Care, Home Care, and Nutrition—to drive growth and increase profitability.



The multinational further explained that its actions will drive higher profits, saying, “The board believes that Unilever should be increasingly focused on a portfolio of unmissably superior brands with strong positions in highly attractive categories that have complementary operating models.”



“After separating Ice Cream and implementing the productivity programme, Unilever will have a structurally higher margin,” the company added.



The restructuring is projected to deliver total cost savings of approximately 800 million euros ($868 million) over the next three years.



Following the announcement, Unilever’s shares experienced a 5.6% increase, though they later adjusted to trade up 4.1% at 9:20 a.m. London time.



Ben & Jerry’s dates back to 1978 when founders Ben Cohen and Jerry Greenfield opened their first shop in Vermont. Acquired by Unilever in 2000, Ben & Jerry’s has maintained its longstanding commitment to social and environmental causes, occasionally sparking controversy.