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Unilever to cut 7,500 jobs and spin off ice cream business

March 19, 2024 - from the Food Dive:

• "Unilever plans to spin off its ice cream business as part of a sweeping restructuring plan designed to create “a simpler, more focused company.”
• "The Ben & Jerry’s manufacturer said ice cream has “distinct characteristics” compared to other parts of its business, including its presence in frozen, more seasonality and a greater capital intensity. As a standalone entity, the management team will have the flexibility to grow ice cream and allocate capital and resources in a business with a specific strategy.
• "The consumer goods company also announced it would cut about 7,500 jobs as part of the restructuring effort designed to increase sales, cut costs and boost productivity. Unilever currently employs about 128,000 people.

"Unilever, which makes everything from Hellmann’s mayonnaise and Magnum ice cream bars to Dove soap and Axe deodorant, said it would benefit by running a focused portfolio of strong brands in highly attractive categories.

"Once the restructuring is complete, Unilever will be left with four business segments: beauty and wellbeing, personal care, home care and nutrition.

"Unilever said its ice cream division, which makes Good Humor, Talenti, Breyers, Popsicle and Klondike, would most likely be listed as a separate entity. It could also choose to sell the business.

"The separation of ice cream also would help Unilever distance itself from Ben & Jerry’s, a brand known for its social activism platform that often has led to tension with its corporate parent. In 2022, the brand known for quirky flavors like Cherry Garcia and Chunky Monkey sued Unilever after it divested its business in Israel without its consultation."