A family enjoys the visitor attractions at the Ben & Jerrys factory in Waterbury, Vermont on June 24, 2021.
Christiana Botic | Boston Globe | Getty Images
Shares of consumer goods giant Unilever rose more than 5% on 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 affect 7,500 jobs.
“The proposed changes are expected to impact around 7,500 predominantly office jobs globally, and total restructuring costs are now expected to amount to around 1.2% of total group turnover for the next three years (up from around 1% of total group turnover at previously announced). ” a statement said.
Unilever shares rose 5.6% at 8:10 London time, moments after the announcement.
The company said the restructuring will begin immediately and is expected to be completed by the end of 2025. It is expected to achieve total cost savings of about 800 million euros ($868.3 million).
Unilever said the restructuring will allow it to become a “simpler, more focused company”, with four distinct business divisions including beauty and luxury, personal care, home care and nutrition.
The company added that its ice cream division, which generated revenues of €7.9 billion in 2023, would perform better as a standalone business.
Unilever said that separation plans have not yet been finalized, but that “separation is the most likely path to separation.”
She said that the costs of this step will be determined once the final decision is made.
The move is the most radical yet in a wide-ranging overhaul undertaken by CEO Hein Schumacher, who took the reins of the company in July 2023.
Unilever has faced increasing calls in recent years, including from activist investors, to overhaul its sprawling business amid wide swings in its share price. The stock lost about 6% compared to last year.
