LONDON, UK — Unilever (ULVR.L), the consumer goods giant behind iconic brands like Marmite and Dove soap, has already eliminated approximately 6,000 jobs as part of a major restructuring effort. The move is part of an ongoing overhaul aimed at reducing costs and streamlining operations, which will also see the company spin off its ice cream division into a standalone business.
The company announced last year that it would reduce its global workforce by 7,500 positions in a bid to save 800 million euros (£683.9 million) in costs. By the end of the first quarter, around 6,000 of those job cuts had already been implemented. Unilever expects to achieve 550 million euros (£470.2 million) of these savings by 2025.
Before the restructuring, Unilever employed about 128,000 people globally, with approximately 6,000 employees based in the UK.
As part of the restructuring, Unilever is moving forward with plans to separate its ice cream business, which includes brands such as Ben & Jerry’s and Magnum. This new entity, to be known as The Magnum Ice Cream Company, is expected to be listed on the Amsterdam Stock Exchange by the end of 2025, with secondary listings in London and New York. The ice cream division will officially become a standalone business on July 1, 2025.
Unilever has also reassured investors that the impact of new trade tariffs on its profitability will be “limited and manageable.” Despite this, the company acknowledged the uncertainty surrounding the global macroeconomic environment, currency fluctuations, and consumer sentiment. “We will remain agile in adjusting our plans as necessary,” the company said in its latest update.
The company’s recent first-quarter results showed a 3% increase in underlying sales, although overall revenues were down 0.9%, totaling 14.8 billion euros (£12.7 billion). This decline was attributed to disposals and currency exchange impacts. Nevertheless, Unilever maintained its full-year outlook, forecasting underlying sales growth of 3% to 5%.
New CEO Fernando Fernandez, who took over in March following the sudden departure of former CEO Hein Schumacher, acknowledged the global macroeconomic challenges but expressed confidence in the company’s ability to deliver on its targets. “Despite heightened global uncertainty, we remain confident in our ability to achieve our full-year goals, thanks to the strength of our innovation program, strong brand investments, and improving competitiveness,” Fernandez said.
In addition to the restructure, Fernandez also noted that rising commodity prices, particularly for palm oil, dairy, and cocoa, could lead to higher prices for certain products, including ice cream. However, the company is exploring mitigation strategies as it monitors consumer demand and market conditions.
Unilever’s ongoing transformation reflects its efforts to stay competitive in a rapidly changing market while positioning itself for long-term growth in an increasingly uncertain global economic environment.
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