Unilever has revealed plans for a significant overhaul, including the spin-off of its ice cream business, in a bid to streamline operations and enhance profitability. The restructuring initiative aims to transform the company into a more focused and efficient entity.
Under the restructuring plan, Unilever intends to separate its ice cream division into a standalone entity, citing the unique characteristics of the ice cream business and its distinct market dynamics. This move will provide the management team with greater flexibility to drive growth and allocate resources effectively.
Alongside the spin-off, Unilever also announced a workforce reduction of approximately 7,500 jobs as part of efforts to optimize costs and improve productivity. With a current workforce of around 128,000 employees, this restructuring marks a significant shift in Unilever’s operational strategy.
Hein Schumacher, CEO of Unilever, emphasized the importance of simplifying the company’s portfolio and driving greater productivity to unlock its full potential. The restructured Unilever will focus on four core business segments: beauty and wellbeing, personal care, home care, and nutrition.
Unilever’s ice cream division, which includes popular brands like Good Humor, Talenti, and Breyers, generated significant revenue of 7.9 billion euros in 2023. Despite its prominent position in the market, the ice cream business witnessed slower growth compared to other segments.
The decision to spin off the ice cream business also aims to address any potential conflicts, such as those seen with the socially active brand Ben & Jerry’s, which previously sued Unilever over strategic decisions.
Unilever’s restructuring follows previous divestments, including the sale of tea brands and grooming products, signaling a strategic shift towards a more focused portfolio. The move comes amidst pressure from activist investors for meaningful changes within the company.
With this ambitious restructuring plan, Unilever aims to position itself as a leading consumer goods company, delivering sustainable growth and enhanced profitability in the evolving market.