Unilever CEO takes charge with plan to shed ice cream, jobs

The new boss of Unilever Plc wants to reverse years of lackluster performance with an ambitious plan to separate the conglomerate s ice cream arm and...

The new boss of Unilever Plc wants to reverse years of lackluster performance with an ambitious plan to separate the conglomerate’s ice cream arm and remove layers of middle management.

About nine months since taking charge of the Anglo-Dutch company, Hein Schumacher moved to offload a division worth as much as $18 billion, according to Barclays analysts. It’s home to brands including Ben & Jerry’s and Magnum - which a previous Unilever chief, Paul Polman, dubbed "one of the greatest-ever success stories in the consumer goods market.”

It’s just one part of Schumacher’s wider plan to drive growth and boost profits at Unilever and unpick a legacy of overexpansion, missed opportunities and failed M&A. The new CEO, who was appointed after activist investor Nelson Peltz took a stake in the company and joined its board, also plans to cut 7,500 jobs - almost 6% of the Dove soap maker’s total of 128,000.

"Our overall idea is to do fewer things better, and with greater impact,” Schumacher said on a call with reporters. "Ice cream is truly a different business. It is already managed separately than our other activities.”

The ice cream division had sales of €7.9 billion ($8.6 billion) in 2023, but its profit margin is less than half that of the company’s personal care unit, according to data compiled by Bloomberg. It’s also a seasonal, capital-intensive business requiring more complex cold-chain logistics.