Unilever (NYSE:UL) shares rose around 3% intra-day today after the company announced plans to spin off its ice cream business, including famous brands such as Ben & Jerry’s and Magnum, as part of an extensive restructuring plan affecting 7,500 jobs.
The company stated that this restructuring would lead to approximately 1.2% of its turnover in costs over the next three years, an increase from the previously estimated 1%. The spin-off process is beginning immediately, aiming for completion by the end of 2025. Unilever’s strategy is to achieve mid-single-digit sales growth and slight margin improvements following the division’s separation.
Additionally, the company is embarking on a cost-saving scheme that is expected to save around 800 million euros ($869 million) within three years. CEO Hein Schumacher, since last October, has been focusing on streamlining operations towards 30 key brands, which account for 70% of Unilever’s sales.