Unilever plan
The massive consumer goods company Unilever Plc has revealed a comprehensive reorganization plan that calls for the separation of its $8.6 billion ice cream division and the elimination of 7,500 jobs globally. According to a source article, the action, which aims to streamline operations and spur growth, is a major change for the UK-based corporation led by Chief Executive Officer Hein Schumacher.
The report also stated that Unilever, whose portfolio includes brands like Magnum, Ben & Jerry’s, Hellmann’s mayonnaise, and Domestos cleaners, stated that a variety of options will be considered for the separation of the ice cream division. The most likely scenario, according to the report, is a demerger that creates a new publicly listed company.
Separation period
The separation will start right away and be finished by the end of 2025, according to Unilever, a company listed in London. Though CEO Hein Schumacher stated during a discussion with media that he was “open to options” about where the ice cream company could list, the company is “in the process of moving to a separate head office in Amsterdam”.
Following the separation, Unilever hopes to achieve mid-single-digit underlying sales growth and a slight improvement in margins. Approximately 16% of Unilever’s worldwide sales are derived from the ice cream industry, and in certain nations, this percentage can reach up to 40%.
Statement on Unilever
Jack Martin, portfolio manager at Oberon Investments, stated, “Great news for shareholders regarding the ice cream division as it has been a drag on the business as a whole for some time, share price should respond accordingly this morning.”
“Obviously sad whenever that many people lose their jobs but (CEO) Hein Schumacher has been under pressure to deliver a better performance for the group since being appointed, so it is not hugely surprising to see changes.”
According to the statement, the proposed adjustments are estimated to affect about 7,500 primarily office-based employment worldwide. Over the next three years, total restructuring expenses are projected to be about 1.2% of Group turnover.
