Home » Business News • UK Business News • UK Employment news » Unilever To Cut 7,500 Jobs And Spin-Off Ice Cream Division

Unilever To Cut 7,500 Jobs And Spin-Off Ice Cream Division

By Nithya Bose in Business News, posted March 19, 2024

Unilever, the company behind Marmite and Domestos, has announced 7,500 job losses globally.

The UK-based firm, with almost 128,000 staff, attributes the cuts primarily to technological advancements impacting office positions.

Its 6,000 UK workforce would be mainly affected by the downsizing as part of a three-year initiative to enhance productivity.

The company said it would divest its ice cream division.

This includes popular brands such as Ben & Jerry's, Magnum, and Cornetto, by the following year.

This move is part of a strategic review to optimise shareholder returns.

Unilever aims for mid-single-digit underlying sales growth and a modest margin improvement.

It projects the company will emerge as a more streamlined and focused entity.

The company expects to save around €800 million (£984 million) in costs over three years.

Unilever's productivity drive involves a restructuring expense forecasted to be 1.2 percent of its turnover for the same period.

Need Career Advice? Get employment skills advice at all levels of your career

CEO Hein Schumacher said: "Under the Growth Action Plan we have committed to do fewer things, better, and with greater impact.

"The changes we are announcing today will help us accelerate that plan, focusing our business and our resources on global or scalable brands where we can apply our leading innovation, technology and go-to-market capabilities across complementary operating models.

"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.

"We are committed to carrying out our productivity programme in consultation with employee representatives, and with respect and care for those of our people who are impacted."

Follow us on YouTube, X, LinkedIn, and Facebook