Unilever reveals plans to slash 7,500 jobs and to split from ice-cream division
Consumer goods giant Unilever has announced plans to spin off its Ben & Jerry’s ice cream division and cut around 7,500 jobs globally as part of a major group-wide shake-up.
The firm, which also produces Marmite and Dove soap, said the jobs affected would be largely office-based as it looks to invest in artificial intelligence (AI) and IT to boost productivity and save around 800 million euro (£684 million) over the next three years.
The group said staff will be consulted about the cuts, but did not reveal whereabouts they will be made.
The jobs are expected to go over the next two years.
Unilever has 128,000 employees globally, with 6,000 in the UK.
Chief executive Hein Schumacher said: “Under the growth action plan we have committed to do fewer things better, and with greater impact.
“The changes we are announcing today will help us accelerate that plan.”
He added: “We are committed to carrying out our productivity programme in consultation with employee representatives, and with respect and care for those of our people who are impacted.”
The group’s bosses confirmed that AI would “play a role” in the jobs cull as part of a “comprehensive” programme to invest in technology.
It said it was too early to give details on the types of jobs that would be affected, given the need to consult with staff, but confirmed roles would go across sites including its head office and corporate centres.
Unilever also said the overhaul would see it spin off its ice cream business - which also includes Wall’s and Magnum brands - most likely through a separate stock market listing.
It has not yet decided whether the ice cream arm would be listed in London or the Netherlands, where the division is currently headquartered.
The ice cream division delivered turnover of 7.9 billion euro (£6.8 billion) last year, but Unilever said it differed from the rest of the group due to its seasonal sales nature, while it also has a frozen supply chain and “high capital requirements”.
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