Ben & Jerry's owner warns of up to 7,500 job cuts

Ben & Jerry is known for his stance on social issues. Photo: JIM LO SCALCZO/EPA-EFE/Shutterstock

Unilever warned that up to 7,500 jobs are at risk as Ben & Jerry's owner has outlined plans to spin off its ice cream division into a separate business.

The FTSE 100 consumer goods giant, which makes dozens of household products from Dove soap to Marmite, said it was aiming to become more a simple and focused company.”

Chief Executive Hein Schumacher said he was “open to options” for a possible listing abroad.

The ice cream division is currently run from Rotterdam in the Netherlands, although Mr. Schumacher said on Tuesday it was in the process of moving to a new base in Amsterdam.

That could happen. start a battle between London and Amsterdam for listing rights.

As part of a major overhaul expected to save €800m (£684m) over the next three years, Unilever will spin off its business ice cream production and will split the rest of the company into four divisions: cosmetics and cosmetics; well-being; personal hygiene; home care; and food.

Unilever, which has 128,000 staff worldwide and 6,000 in the UK, said the cuts would largely affect office staff.

City investors welcomed the split, which is expected to happen by the end 2025.

Roseanne Ivory, a fund manager at one of Unilever's largest shareholders Abrdn, said she was pleased the company was exploring options for its «more sophisticated» ice cream division, adding that a sale would only make sense if the price was right.

Major shareholder Terry Smith, who last year accused Unilever of «virtue signaling» and previously claimed the company had «lost the vision» by trying to «define the purpose of Hellman's mayonnaise», also welcomed the decision.

Unilever chief Hein Schumacher has been fighting to restore confidence in the business since taking over last July. Photo: UNILEVER/FRIESLANDCAMPINA

Speaking to Sky News, he said his only disappointment was that the split was being presented as part of a «growth action plan» because «would you ever put forward a 'no action plan to cut' «?»

Mr Schumacher took over in July last year and has since been fighting to restore confidence in the business.

He has already unveiled plans to move away from Unilever's focus on «social purpose» and said he would no longer seek to «force» brands to meet social causes.

The spin-off of the ice cream business, which had a combined turnover of 7 €.9bn (£6.8bn) in 2023 was the result of a series of disagreements between Unilever and its Ben & Jerry's brand.

Founded in 1978, Ben & Jerry's is known for its stance on social issues such as refugee rights, LGBT+ issues and climate change.

Ice cream flavors are often named after social issues, such as «Save Our Swirled,» a raspberry-marshmallow flavor meant to raise awareness about global warming, and an apple pie flavor. «Apple-y Ever After» in support of same-sex marriage

Executives of the ice cream company, which has an independent board, called in January for a «permanent and immediate» ceasefire in Gaza, having previously clashed with its parent company in 2021 after vowing to stop selling products in the Occupied Palestinian Territories.