Consumer goods giant Unilever has said it would split off its ice cream business unit and cut jobs as part of an extensive three-year cost-saving plan, the BBC reported.
The manufacturer of ice cream products including the Wall’s, Ben & Jerry’s and Magnum brands, said the move would see the ice cream division become a standalone business unit and would involve the loss of 7,500 jobs worldwide, the 19 March report said.
“Ice cream has a very different operating model … and the board has decided that the separation of the unit best serves the future growth of both Ice Cream and Unilever,” the company said in a statement on its website on 19 March.
“The ice cream unit has distinct characteristics compared with Unilever’s other operating businesses. These include a supply chain and point of sale that support frozen goods, a different channel landscape, more seasonality and greater capital intensity.”
Unilever said the move would help it to “do fewer things better”.
A demerger of the unit was the most likely separation route, the company said.
The spin off, which was expected to start immediately, was scheduled for completion by the end of 2025.
After the separation, Unilever would have four divisions – beauty and wellbeing, personal care, home care and nutrition. Unilever’s other brands include Marmite spread, Hellmann’s mayonnaise and Dove soap.
