Unilever (UL, Financial) has announced that it will reduce its planned job cuts in Europe by approximately 1,500 positions. Originally estimating a reduction of 3,200 jobs, the company now intends to lay off around 1,700 employees. In addition, Unilever plans to hire about 1,000 people primarily impacted by cost-cutting measures due to the upcoming spinoff of its ice cream division.

Under CEO Hein Schumacher’s leadership, Unilever has been focused on streamlining its operations over the past year. The company faced criticism for expanding its brand portfolio to around 400 brands, which some investors and board member Nelson Peltz (Trades, Portfolio) saw as diluting focus on top-performing brands. There was also concern over the slow recovery of profit margins post-pandemic.

As part of a global restructuring effort, Unilever announced earlier this year its intention to cut 7,500 jobs worldwide, aiming to save approximately 800 million euros (about 845 million USD). The company has also decided to separate its ice cream business, which includes brands like Ben & Jerry’s and Magnum, from its main operations.

The Unilever European Works Council (UEWC) has criticized the decision, arguing that the reorganization could have been done internally. However, after intense negotiations, both parties reached an agreement in October regarding the updated job cuts in Europe and the new opportunities within the ice cream sector.

Unilever’s plan involves adding about 1,000 jobs to its European ice cream division, targeting employees affected by job cuts in other departments. The recruitment process and layoffs will occur simultaneously, aiming for a smooth transition. The company expects the ice cream division spinoff to complete by the end of 2025, with a new headquarters set to open in Amsterdam.