Unilever announced Tuesday that it plans to spin off its ice cream unit as part of a drive to boost sales and profitability, which will also entail cutting around 6% of the workforce. After a century-long endeavor, Unilever now dominates the global ice cream market, with its brands sold around the world. “Following separation, Unilever will become a simpler, more focused company,” it said in a statement.
Today, it sells ice cream in more than 60 countries and commands almost a fifth of global ice cream sales, a bigger share than that of the next four biggest sellers combined, according to 2020 figures from market research firm Euromonitor. But its ice cream sales took a hit last year as cash-strapped consumers cut back on non-essential spending. “Ice cream had a disappointing year with declining market share and profitability,” Unilever said in an earnings statement.