Ralph Tathagata

Unilever Plc says it is cutting 7, 500 jobs in a restructuring bid and will also separate its ice cream business that includes brands such as Ben & Jerry’s. According to the company, a range of options will be considered for the separation, with a likelihood of demerger that creates a new listed business.

Hein Schumacher, Unilever Chief Executive Officer, pointed out that the move is part of a broader restructuring as the company tries to jumpstart growth. The job cuts, he noted, will affect mainly office-based roles as part of a plan to achieve €800 million in cost savings over the next three years.

It was further stated that the restructuring will leave Unilever focused on four businesses, including beauty and wellbeing, personal care, home care and nutrition.

Recall that Unilever has recorded underperformance in recent times, especially since July, when Schumacher took the reins as the company’s shares declined 6.8%.

Unilever’s revenue grew 4.7% in the final quarter of 2023, and industry watchers believe that the separation of the ice cream unit will remove a protracted battle for Unilever, which has faced controversies surrounding political stances taken by Ben & Jerry’s.

It would recalled that in December 2022, Unilever settled a court battle with Ben & Jerry’s independent board over the licensing of the brand in the Israeli-occupied West Bank.