LONDON (AP) — Unilever, the company that makes Ben & Jerry’s ice cream, Dove soaps and Vaseline, said Tuesday that it is cutting 7,500 jobs and spinning off its ice cream business to reduce costs and boost profits.
London-based Unilever said its ice cream business, which also includes Magnum bars, has “distinct characteristics” from its other brands and would benefit from separate ownership to increase growth. It said the split is expected to be completed by the end of next year.
The British consumer goods company with 128,000 employees said it also is launching a “productivity program” that is expected to lead to a reduction of about 7,500 mostly office-based jobs worldwide.
It said it will invest in technology to find efficiencies and avoid duplication that it anticipates will help it save 800 million euros ($867 million) over the next three years. Unilever also laid off 1,500 staffer s in early 2022.
“Simplifying our portfolio and driving greater productivity will allow us to further unlock the potential of this business, supporting our ambition to position Unilever as a world-leading consumer goods company delivering strong, sustainable growth and enhanced profitability,” said CEO Hein Schumacher, who took over Unilever last summer.
Unilever shares jumped 3.6% in morning trading on the London Stock Exchange.
The company behind Hellman’s mayonnaise, Axe fragrances and Cif household cleaners said is targeting underlying sales growth of mid-single digits after spinning off the ice cream business.
It saw sales volume drop 3.6% in 2022 after jacking up prices 13.3% on average across its brands that year. In response, it raised prices just 2.8% last year, and sales rose 1.8%.