Unilever divests ice cream business and cuts 7,500 jobs

Consumer goods manufacturer Unilever wants to spin off its ice cream brands such as ‘Magnum’ and ‘Langnese’ and spin them off into an independent company. The company announced in London on Tuesday that the intention is to focus on a portfolio of “brands with strong positions”.

The restructuring should therefore lead to the group growing stronger and becoming more profitable. The division is expected to be spun off in 2025. The ice cream division had a turnover of 7.9 billion euros last year with brands such as Magnum, Langnese, Ben & Jerry’s and Cornetto. Turnover for the entire group amounted to 59.6 billion euros last year.

To maximize shareholder returns, “other options for separation” should also be considered. In addition to the renovation, Unilever wants to start an extensive efficiency program. As a result, approximately 7,500 employees are expected to leave the group. Leaner structures are expected to save EUR 800 million over the next three years.

After spinning off the ice cream division, Unilever wants to concentrate on four business areas: ‘Beauty and Wellbeing’ with brands such as Dove and Vaseline, ‘Personal Care’ with products from Ax and Rexona and ‘Home Care’ (Domestos, Cif) and “Nutrition” -Articles from Knorr, among others. (rbu/sda/awp/dpa)