Ben & Jerry's Ice Cream on May 24, 2022.
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Shares of consumer goods giant Unilever rose more than 5% on Tuesday after the company announced plans to split its ice cream unit, which includes Ben & Jerry's and Magnum, as part of a restructuring affecting 7,500 jobs.
“The proposed changes are expected to affect 7,500 mainly office-based roles worldwide, with total restructuring costs of approximately 1.2% of group turnover over the next three years (up from 1% of group revenue previously reported),” it said in a statement.
Shares in Unilever rose 5.6% at 8:10 London time, minutes after the announcement.
Renovations will begin immediately and are expected to be completed by the end of 2025, the company said. It is expected to provide total cost savings of around 800 million euros ($868.3 million).
Unilever said the restructuring would allow it to become a “simpler, more focused company” with four distinct business units in beauty and wellbeing, personal care, home care and nutrition.
The company added that its ice cream division, which generated revenues of 7.9 billion euros in 2023, will perform well as a standalone business.
Unilever has yet to finalize plans for the spinoff, but said “separation is the way to separation.”
It said the costs of the move will be determined after a final decision is taken.
The move is the most radical in a broader overhaul of CEO Hein Schumacher, who will take the helm of the company in July 2023.
Unilever has faced growing calls in recent years, including from activist investors, to overhaul its wider business amid wide swings in its share price. The stock lost about 6% from a year ago.
