Unilever today announced steps to accelerate its Growth Action Plan (GAP) through the separation of Ice Cream and the launch of a major productivity program.
Unilever is set to reduce its global workforce by 7,500 employees as part of a restructuring effort aimed at achieving approximately €800 million in savings over the next three years. The multinational consumer goods company, known for brands like Marmite, Dove soap, and Lynx deodorant, currently employs 128,000 individuals worldwide, including 6,000 in the UK. While Unilever has not disclosed specific details about where the job cuts will occur, it has stated that affected staff will be consulted.
In addition to the workforce reduction, Unilever has announced plans to separate its ice cream business. This division, which includes popular brands like Wall’s, Magnum, and Ben & Jerry’s, accounts for five of the world’s top-selling 10 ice-cream brands and generates annual revenues of €7.9 billion. Unilever is considering various options for the spin-off, with a demerger being the most likely scenario. The company anticipates completing the separation by the end of 2025.
After the split, Unilever will have four remaining divisions: beauty and wellness, personal care, home care, and nutrition.
Ian Meakins, the Unilever chair, said: “The separation of ice cream and the delivery of the productivity program will help create a simpler, more focused, and higher-performing Unilever. It will also create a world-leading ice-cream business, with strong growth prospects and an exciting future as a standalone business.”
Hein Schumacher, CEO of Unilever said: “Under the Growth Action Plan we have committed to do fewer things, better, and with greater impact. The changes we are announcing today will help us accelerate that plan, focusing our business and our resources on global or scalable brands where we can apply our leading innovation, technology and go-to-market capabilities across complementary operating models.”
