Unilever axes 6,000 jobs as it eyes sale of ice cream business
Unilever slashed its full-time employee global headcount by 6,000 in the first quarter of this year as part of an €800million cost-cutting drive.
The consumer giant's headcount reduction will see 7,500 job losses in total, from 'mainly office-based roles', according to Unilever.
Unilever said on Thursday it expects to realise around €550million of the programme's savings by the end of this year and forecasts restructuring costs of around 1.4 per cent of its turnover in 2025.
Before the restructure, Unilever employed around 6,000 employees in Britain and 128,000 globally.
The group said it was pressing ahead with the separation and listing of its Ben & Jerry's and Magnum ice cream arm, to be called The Magnum Ice Cream Company, by the end of this year, while it will operate as a standalone business from 1 July.
The business will have its primary listing in Amsterdam, with secondary listings in London and New York.
On Trump's tariffs, Unilever said it expected the impact of new trade tariffs on its profitability 'to be limited and manageable'.
It added: 'All this being said, we are conscious that the macroeconomic environment, currency stability and consumer sentiment remain uncertain and we will be agile in adjusting our plans as necessary.'
Recently appointed chief executive Fernando Fernandez, said: 'Heightened global macroeconomic uncertainty is a fact; however the quality of our innovation programme, the strong investment behind our brands and our improving competitiveness give us confidence we will deliver on our full-year plans.'
Unilever beat estimates for first-quarter underlying sales growth, helped by price increases and strong demand for its premium products.
Consumer goods companies, already struggling to regain shopper loyalty after sharply hiking prices for years, have in recent months found themselves forced to navigate unpredictable consumer habits shaped by fears over the impact of Trump's tariffs.
The update on Thursday marked Unilever's first since it surprised investors in February by ousting former boss Hein Schumacher and appointing Fernandez as his successor in March.
The maker of Dove soap and Ben & Jerry's ice cream reported a 3 per cent rise in underlying sales growth for the quarter ending 31 March, topping analysts' expectations of a 2.8 per cent increase, and reaffirmed its 2025 outlook.
Under Schumacher, Unilever had laid out cost cuts last year, including separating the ice cream division through a demerger and cutting thousands of jobs to address years of underperformance.
The company said in February that its ice cream business would be listed in Amsterdam and have secondary listings in London and New York.
Unilever, whose other brands include Vaseline, Hellmann's mustard and Lifebuoy, said it was confident about its full-year plans despite the global macroeconomic uncertainty.
Unilever shares rose 0.29 per cent or 14.00p to 4,830.00p on Thursday, having risen around 25 per cent in the last year.
On Wednesday, Reckitt unveiled shrinking sales and warned that 'market conditions' could affect the sale of its Essential Home cleaning products arm as it reported a slight miss on quarterly sales expectations.
Richard Hunter, head of markets at Interactive Investor, said: 'Unilever has dodged the bullets which harmed Reckitt Benckiser following its update yesterday, with a rather more solid outlook which gives investors additional clarity.
'For many, Unilever will continue to be seen as a solid defensive play and a core constituent of most portfolios.
'While there are inevitably many similarities with its peer Reckitt Benckiser, there are also subtle differences which elevate Unilever to be the preferred play in this sector, with the market consensus of the shares as a cautious buy reflecting rather more visible growth and strategic prospects.'
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