Unilever has said that it will be spinning off its ice-cream unit, which includes popular brands like Magnum and Ben & Jerry’s. However, it will subsequently, be cutting 7500 jobs in a new cost-saving programme.
The spin off will begin immediately and is likely to finish by the end of 2025.
Unilever CEO Hein Schumacher said on a call with journalists that the ice cream business is currently in the process of moving to a new head office in Amsterdam. However, he said that he is still open to options on where to list the new company.
Unilever’s ice-cream business accounts for around 16 percent of the company’s global sales and in some countries it accounts for a third or about 40 percent, reported Reuters.
The company’s cost-saving programme is expected to save around 800 million euros over the next three years. These changes will affect 7500 jobs globally, all likely office-based.
Unilever has a global workforce of around 1,28,000 employees. The job cut will affect 5.9 percent of this workforce.
Shareholders and investors are pleased with this move by the FMCG giant.