What is set forth in Unilever's restructuring strategy?

As a result, the British consumer products behemoth chose to split off its ice cream division, which includes renowned brands such as Ben & Jerry's and Magnum. This decision came after a larger reorganization process launched by CEO Hein Schumacher, who took over leadership in July 2023.

Unilever's ice cream division, which generated sales of 7.9 billion euros ($8.6 billion) in 2023, would be transformed into an autonomous business entity with structural designs focused at maximizing brand performance. Unilever's reorganization is likely to effect around 7,500 positions globally.

In a statement, the consumer products major stated that their objective was to build "a leaner and more efficient firm, underpinned by technological investments." The proposal is scheduled to be finished by the end of 2025.

Unilever announced plans to create four new business areas - Beauty & Wellbeing, Personal Care, Home Care, and Nutrition - to boost growth and profitability.

The global business went on to clarify that their moves will result in better profits, saying, "The board thinks Unilever should progressively focus on a portfolio of unassailable brands with strong positions in highly appealing sectors and complementary operational models."

The business added: "Unilever will have a greater profit margin structure following the spin-off of the ice cream segment and the productivity initiative." Essentially, the restructure is estimated to save over 800 million euros ($868 million) in expenditures over the next three years.

In actuality, the Ben & Jerry's brand was founded in 1978 by Ben Cohen and Jerry Greenfield, who opened their first store in Vermont. Ben & Jerry's was acquired by Unilever in 2000 and has maintained its long-term commitment to social and environmental causes, despite occasional political controversy.

Meanwhile, Hein Schumacher, who became CEO of Unilever last year after activist investor Nelson Peltz joined the board, seeks to revive the consumer products conglomerate's growth, according to Bloomberg.

With the spin-off of the ice cream business and job layoffs, CEO Schumacher hopes to simplify Unilever's operations and prepare the company for future development in a global consumer goods market characterized by increased competition and shifting customer tastes.

Unilever is today one of the world's largest multinational firms, focusing on personal care, home care, and food goods. However, they are also a big participant in the worldwide ice cream market, with well-known brands including Wall's and Magnum.

According to market research company Euromonitor, Unilever presently distributes ice cream in over 60 countries worldwide, accounting for about one-fifth of global ice cream sales, with Magnum being the world's best-selling ice cream brand, with sales of $8.6 billion in 2023.

Unilever joined the Vietnamese ice cream market in 1997, investing $22 million to build the Wall's ice cream facility in Ho Chi Minh City, which was the country's largest ice cream factory at the time. However, the consumer products giant's expansion plan failed since it was unaffordable to the majority of Vietnamese customers at the time.

In 2003, Unilever chose to exit the Vietnamese ice cream industry by selling the facility to KIDO. Later, the firm re-entered the ice cream category in Vietnam, although its market share was just over 10%, behind only its previous rival KIDO, who had bought their ice cream segment, with more than 40%.