Ben & Jerry’s owner warns of 7,500 job cuts
UNILEVER has warned that up to 7,500 jobs are at risk as Ben & Jerry’s owner outlined plans to split off its ice cream unit as a separate business.
The FTSE 100 consumer goods giant, which makes dozens of household products from Dove soap to Marmite, said it was seeking to become a “simpler, more focused company”.
Hein Schumacher, the chief executive, said he was “open to options” about a possible float abroad.
The ice cream division is run from Rotterdam, although Mr Schumacher indicated yesterday that it is in the process of moving to a new base in Amsterdam.
This could kickstart a battle between London and the Dutch capital to secure any potential listing.
Under the overhaul, which is expected to save €800m (£684m) over the next three years, Unilever will separate its ice cream businesses and divide the rest of the company into four divisions: beauty and well-being; personal care; home care; and nutrition.
Unilever, which has 128,000 employees globally and 6,000 in the UK, said office-based staff will be largely affected by the cuts.
City investors welcomed the separation, which is expected to take place by the end of 2025. Roseanna Ivory, a fund manager at Abrdn, one of Unilever’s top shareholders, said she was pleased the company was exploring options for its “more complicated” ice cream arm, adding that a sale would only make sense at the right price.
The ice cream division, which owns a range of brands including Wall’s, Magnum and Cornetto, “has been a drag on the business as a whole for some time”, said Jack Martin, portfolio manager at Oberon Investments.
Major shareholder Terry Smith, who last year accused Unilever of “virtue signalling” and has claimed that the company had “lost the plot” by trying to “define the purpose of Hellmann’s mayonnaise”, also approved of the decision. Speaking to Sky News, he said his only frustration was that the split was marketed as being part of a “growth action plan” because “would you ever put out a ‘shrinkage inaction plan?’”.
Shares in Unilever, which have performed poorly over the past five years, dropping 9pc, were up by more than 3pc yesterday. The underperformance in recent years attracted the attention of
Nelson Peltz, the billionaire activist investor, who took a seat on Unilever’s board in 2022 and has a record of pushing for shake ups at consumer goods companies.
His fund, which owns a 1.45pc stake, is understood to be supportive of the announcement.
Mr Schumacher took over the company last July and has since been battling to revive confidence in the business.
He unveiled plans to roll back Unilever’s focus on “social purpose” and said he would no longer seek to “force fit” brands with a social cause.
The separation of the ice cream business, which had a combined turnover of
€7.9bn in 2023, comes after a series of clashes between Unilever and its Ben & Jerry’s brand.
Founded in 1978, Ben & Jerry’s is known for taking a stance on social issues such as refugees’ rights, LGBTQ+ issues and climate change.
Its ice cream flavours are often named after social issues such as raspberry and marshmallow-flavoured “Save Our Swirled”, which was to raise awareness for global warming, and apple pie-flavoured “Apple-y Ever After” in support of same-sex marriage.
Bosses at the business, which has an independent board, called for a “permanent and immediate” ceasefire in Gaza in January.