Unilever to spin off ice cream unit that manufactures Magnum, cut 7,500 jobs

Under the new plan, the maker of magnum ice cream expects to save around $869 million in the next three years.

Hindustan Unilever’s parent firm Unilever plans to separate its ice cream unit into a standalone business under a new cost-savings programme that will see the trimming of 7,500 jobs. The move is expected to be completed by the end of next year, the company said, according to a report by Reuters.

Under the new plan, the maker of magnum ice cream expects to save around $869 million in the next three years.  The changes will impact around 7,500 jobs, mostly roles based in offices and it is also anticipated to affect around 1.2% of the company’s turnover.

In October 2023, chief executive officer Hein Schumacher had admitted that the firm had not performed to the expected levels in recent years. Schumacher had promised to simplify the business and focus on 30 key brands that form 70% of the firm’s sales, avoiding any major acquisitions. Schumacher told Reuters in February that he would not shy away from streamlining Unilever's 127,000 workforce.

"The changes we are announcing today will help us accelerate that plan," Schumacher said on March 19. "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."