Unilever, the parent company of ice cream brands such as Magnum and Ben & Jerry's, has unveiled plans to spin off its ice cream division into a standalone entity. This strategic move comes alongside the announcement of a new cost-saving initiative, set to affect approximately 7,500 positions globally within the consumer goods conglomerate, as per report by news agency Reuters.
According to the report, the separation process is set to commence immediately, with completion anticipated by the end of 2025, according to statements from the London-listed corporation.
In a bid to streamline operations and refocus its efforts, Unilever aims to achieve mid-single digit underlying sales growth and marginal margin enhancements post-spin-off. The company envisions this restructuring as a means to become a "simpler and more focused company," as outlined in their official statement.
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Unilever has initiated a comprehensive programme aimed at generating cost reductions totaling around 800 million euros ($869 million) over the next three years.
As part of these efforts, an estimated 7,500 positions worldwide are expected to be affected. The projected restructuring costs are now estimated to represent nearly 1.2 per cent of the company's turnover during the specified period.