Unilever announced Tuesday it is laying off thousands of workers worldwide and plans to spin off its ice cream unit to become a "more focused company."
Unilever, the maker of more than 400 brands, said that it will cut 7,500 predominantly office-based roles in an effort to drive "growth through a leaner and more accountable organization, enabled by investment in technology."
The move is part of the company's recently announced comprehensive productivity program, which was initiated after the company "identified additional efficiencies that can now be accelerated."
LAYOFFS SURGED IN FEBRUARY TO HIGHEST LEVEL SINCE 2009
Unilever said its board believes it should focus more attention on "superior brands with strong positions in highly attractive categories that have complementary operating models" and that ice cream has a very different operating model.
The company has been in the ice cream business since 1922, when it bought Wall's. Ice cream brands in its current portfolio include Ben & Jerry's, Breyers, Magnum, Popsicle and Klondike.
LAYOFFS SURGED 136% IN JANUARY TO SECOND-HIGHEST LEVEL ON RECORD
"Following separation, Unilever will become a simpler, more focused company, operating four Business Groups," Unilever said.
The company also owns brands within the beauty and well-being, personal care, home care and nutrition categories.
The separation of its ice cream unit and the implementation of its productivity program mark the latest efforts in the company's growth action plan, announced in October 2023.
The plan, according to Unilever, is centered around "doing fewer things, better, with greater impact to drive consistent and stronger topline growth, enhance productivity and simplicity, and step up Unilever’s performance culture."
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The company projects that its productivity program will deliver total cost savings of around 800 million euros (roughly $870 million) over the next three years, which is "more than offsetting estimated operational dis-synergies from the separation of Ice Cream."
