Unilever PLC (LSE:ULVR) shares jumped over 5% after it announced a major operational overhaul through the separation of its Ben & Jerry's and Walls ice cream business and the termination of 7,500 firm-wide staff members.
“Ice cream has a very different operating model, and as a result the board has decided that the separation of ice cream best serves the future growth of both ice cream and Unilever,” the British multinational consumer goods group said in a statement.
In Ben & Jerry's, Walls and Magnum, Unilever’s ice cream portfolio includes some of the most recognisable names in confectionery, which turned over approximately €7.9 billion (£6.7 billion) last year.
“The separation of ice cream and the delivery of the productivity programme will help create a simpler, more focused, and higher performing Unilever,” said chairman Ian Meakins. “It will also create a world-leading ice cream business, with strong growth prospects and an exciting future as a standalone business."
Initial separation of the business will start immediately, with full separation expected to be completed by the end of 2025.
Unilever has also launched a “productivity programme” that will see 7,500 team members lose their jobs. Restructuring costs are expected to be around 1.2% of total turning for the next three years.
Shares in the FTSE 100-listed group jumped 5.5% to over £40.20 in early trading, though still down over 10% from their one-year peak last May and almost 24% lower than their all-time high in late 2019.