British consumer goods company Unilever (UL) has announced plans to spin-off its ice cream unit that includes popular brands such as Ben & Jerry’s and Magnum.
The company said that the separation of its ice cream division is part of a broad restructuring that will see the company cut 7,500 jobs.
The restructuring is expected to be completed by the end of 2025, the company said. It will deliver cost savings of around 800 million euros ($868.3 million U.S.).
Unilever said it is restructuring into four business units going forward: beauty and wellbeing, personal care, home care, and nutrition.
The company added that its ice cream division, which generated $8.57 billion U.S. in revenue last year, would perform better as a standalone business.
The ice cream unit accounted for 13% of Unilever’s total revenue in 2023. The company said plans for the spinoff, and its costs, have not yet been finalized.
Unilever has faced growing calls from analysts and investors in recent years to overhaul its sprawling business and become more focused.
The Ben & Jerry’s ice cream brand has also proven to be problematic for the company as its founders are known for taking political stands on various issues.
In the past year, Unilever faced a backlash after Ben & Jerry’s called for the return of “stolen” indigenous land in America.
Unilever’s stock has declined 3% over the past 12 months to trade at $48.52 U.S. per share.
