Ben & Jerry’s Ice Cream on May 24, 2022.
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Shares of the consumer goods giant Unilever rose more than 5% Tuesday after the company announced plans to spin off its ice cream unit, which includes Ben & Jerry’s and Magnum, as part of a restructuring that will impact 7,500 jobs.
“The proposed changes are expected to impact approximately 7,500 predominantly office-based roles globally, with total restructuring costs now expected to be approximately 1.2% of Group turnover over the next three years (increasing compared to approximately 1% of the Group’s turnover previously communicated), “we read in a press release.
Unilever shares rose 5.6% at 8.10am London time, moments after the announcement.
The renovation will begin immediately and is expected to be completed by the end of 2025, the company said. Total cost savings are expected to be approximately €800 million ($868.3 million).
Unilever said the restructuring will allow it to become “a simpler and more focused company”, with four distinct business divisions in beauty and wellness, personal care, home care and nutrition.
The company added that its ice cream division, which generated revenues of 7.9 billion euros in 2023, would perform better as a standalone business.
Unilever said plans for the spin-off have not yet been finalized, but that a “split is the most likely route of separation.”
He said the costs of the move will be determined once a final decision is made.
The move is the most radical of a broader overhaul by CEO Hein Schumacher, who took the reins of the company in July 2023.
Unilever has faced growing calls in recent years, including from activist investors, to overhaul its vast business amid wide share price swings. The stock has lost about 6% compared to a year ago.