Unilever to cut 7,500 jobs and Spin off Ben & Jerry’s

the staff of the Ridgewood blog

Ridgewood NJ, Unilever has unveiled plans to streamline its operations by separating its ice cream unit, which houses renowned brands like Ben & Jerry’s and Magnum, in a bid to sharpen its focus on core strengths.

The decision to split the ice cream division comes as part of a broader restructuring spearheaded by CEO Hein Schumacher, who took the helm in July 2023.

With a revenue of 7.9 billion euros in 2023, the ice cream segment will transition into an independent business entity, aiming to enhance the performance of its iconic brands.

As a consequence of the restructuring, around 7,500 jobs worldwide are expected to be affected. Unilever highlighted its intent to build a leaner and more efficient company through technological investments.

The overarching restructuring endeavor is slated for completion by the close of 2025. Unilever intends to establish four distinct business divisions—Beauty & Wellbeing, Personal Care, Home Care, and Nutrition—to drive growth and bolster profitability.

Emphasizing its pursuit of higher profits, Unilever stated, “The board believes that Unilever should be increasingly focused on a portfolio of unmissably superior brands with strong positions in highly attractive categories that have complementary operating models.”

Following the announcement, Unilever’s shares initially surged by 5.6%, later stabilizing to trade up by 4.1% at 9:20 a.m. London time.

Ben & Jerry’s, originating in 1978 when founders Ben Cohen and Jerry Greenfield opened their inaugural shop in Vermont, has been under Unilever’s ownership since 2000. Renowned for its commitment to social and environmental causes, Ben & Jerry’s has occasionally stirred controversy while maintaining its brand ethos.