Global Impact of Unilever’s Job Cuts

This article was last updated on March 19, 2024

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Global Jobs Reduction at Unilever

The international food manufacturing giant Unilever has announced a drastic reduction in staff, with a plan to cut approximately 7,500 jobs around the globe. The move comes as part of a major reorganization initiated by the British-headquartered company. Last year, Unilever revealed plans to eliminate a significant chunk of brands from its portfolio as part of its restructuring strategy in a move that will affect its existing workforce that currently stands at around 127,000 individuals worldwide.

Restructure of Unilever’s Ice Cream Division

In a separate but related move, Unilever has announced changes to its ice cream operation. The company is to segregate the manufacture and sale of ice cream from the rest of the business. Renowned for its popular brands such as Ola, Magnum, Hertog, and Ben & Jerry’s, Unilever’s connection to the ice cream market is well established. The most likely scenario following this change is for the ice cream division to be listed separately on the stock exchange. Dutch CEO, Hein Schumacher, explains that this decision was guided by the unique needs and requirements of their ice cream line, stating: “Ice cream is a frozen product. That is a completely different business model than personal care or detergents.”

The Effect of Weather on Ice Cream Sales

Unilever acknowledges that ice cream sales are heavily influenced by weather conditions, introducing an unpredictable seasonal element that does not align well with their other business interests. Henceforth, the company will direct its focus onto brands that possess strong global recognition and scalability potential. Similarly, Unilever’s nutrition division is also subject to critical review. This type of operational evaluation and restructuring has most recently been applied to Unilever’s tea division.

Stock Market Listing of Ice Cream Division

As part of the new structural changes, Unilever has indicated its intention to publically list its ice cream operations as a separate stock market entity. “This decision did not happen overnight”, assured CEO Hein Schumacher. Yet, it remains undetermined whether this initial public offering (IPO) will occur in The Netherlands, Unilever’s homeland. The impact of these changes on Dutch ice cream production is still under review. Unilever currently operates its ice cream production from The Netherlands. According to CEO Hein Schumacher, Hellendoorn serves as a key hub in Unilever’s European ice cream network. Notably, the region houses the production of the popular Ben & Jerry’s ice cream and the company’s sole Dutch factory, The Vegetarian Butcher located in Breda. As the company navigates this major transition, the future of traditionally Dutch brands, like Zwitsal, Unox, and Knorr, which have shifted production operations overseas, hangs in the balance.