Sunsilk owner Unilever, on Tuesday, said it is restructuring its business by divesting its €7.9 billion ($8.6 billion) ice cream brands, which will impact the job roles of 7,500 employees of the company across the globe.
The firm said the separation activity will begin immediately and is expected to be completed by the end of 2025. The company anticipates its total restructuring costs around 1.2% of Group turnover for the next three years.
Knorr’s parent had 128,000 employees working with the company, based on its 2023 Annual Report, with a majority of 64,000 employees from the Asia Pacific and African region.
The restructuring of its complete business is the implementation of the Growth Action Plan (GAP), announced in October 2023, said the firm, which looks to do fewer things with better and greater impact as well as drive consistent and stronger topline growth, enhance productivity and simplicity.
The multinational conglomerate said the ice cream brands run by the company work under a different operation model. Also, Unilever said the future growth potential will be better delivered under a different ownership structure which includes supply chain and point of sale that support frozen goods.
Some of the widely-known ice cream brands owned by Unilever include Wall’s, Magnum, and Ben & Jerry’s. As a standalone firm, the management will have operational and financial flexibility to grow the business.
“The separation of Ice Cream and the delivery of the productivity programme will help create a simpler, more focused, and higher performing Unilever,” said Ian Meakins, Chair of Unilever.
“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 Hein Schumacher, Unilever’s Executive Chief.
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