Unilever to cut 7,500 jobs, spin off ice cream unit
Unilever's ice cream unit includes Ben & Jerry's, Breyers, Popsicle, Klondike brands
Unilever announced Tuesday it is laying off thousands of workers worldwide and plans to spin off its ice cream unit to become a "more focused company."
Unilever, the maker of more than 400 brands, said that it will cut 7,500 predominantly office-based roles in an effort to drive "growth through a leaner and more accountable organization, enabled by investment in technology."
The move is part of the company's recently announced comprehensive productivity program, which was initiated after the company "identified additional efficiencies that can now be accelerated."
LAYOFFS SURGED IN FEBRUARY TO HIGHEST LEVEL SINCE 2009
The logo of the Unilever group is seen at the Miko factory in Saint-Dizier, France, on May 4, 2016. (Reuters / Reuters Photos)
Unilever said its board believes it should focus more attention on "superior brands with strong positions in highly attractive categories that have complementary operating models" and that ice cream has a very different operating model.
The company has been in the ice cream business since 1922, when it bought Wall's. Ice cream brands in its current portfolio include Ben & Jerry's, Breyers, Magnum, Popsicle and Klondike.
LAYOFFS SURGED 136% IN JANUARY TO SECOND-HIGHEST LEVEL ON RECORD
"Following separation, Unilever will become a simpler, more focused company, operating four Business Groups," Unilever said.
The Ben & Jerry's brand, in particular, has made headlines over the past few years for its political involvement.
In July 2021, Ben & Jerry’s announced it would no longer sell its product to Israelis in the West Bank. Although a subsidiary itself, Ben & Jerry’s maintains its board of directors.
In June 2022, Unilever sold the Ben & Jerry’s ice cream operations in Israel in an attempt to stem the controversy. But the Ben & Jerry’s board was still free to maintain its position on Israel.
Unilever also owns brands within the beauty and well-being, personal care, home care and nutrition categories.
The separation of its ice cream unit and the implementation of its productivity program mark the latest efforts in the company's growth action plan, announced in October 2023.
Ben & Jerry's, a brand of Unilever, is seen on display in a store in New York City on March 24, 2022. (REUTERS/Andrew Kelly/File Photo / Reuters)
The plan, according to Unilever, is centered around "doing fewer things, better, with greater impact to drive consistent and stronger topline growth, enhance productivity and simplicity, and step up Unilever’s performance culture."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UL | UNILEVER PLC | 51.25 | +0.33 | +0.65% |
The company projects that its productivity program will deliver total cost savings of around 800 million euros (roughly $870 million) over the next three years, which is "more than offsetting estimated operational dis-synergies from the separation of Ice Cream."
FOX Business' Fred Lucas contributed to this report