(Reuters) – Unilever announced on Tuesday that it would spin off its ice cream business, which includes the Ben & Jerry’s and Magnum brands, as an independent entity as part of a new cost-cutting plan that includes cutting 7,500 jobs .

The demerger, which began with immediate effect, is expected to be completed by the end of 2025, the British FMCG giant said.

Unilever is aiming for underlying sales growth of 4 to 6 percent (“mid-single-digit”) and a modest improvement in margins after the split, it said in a statement.

The company has also launched a program that is expected to deliver total savings of around €800 million over the next three years.

The proposed changes would affect around 7,500 positions worldwide, mainly in the administrative field, and the total cost of the restructuring is expected to represent around 1.2% of the company’s turnover during this period.

In October, Chief Executive Hein Schumacher outlined plans to simplify the company after admitting that Unilever had underperformed in recent years.

“The changes we are announcing today will help us accelerate this plan,” Hein Schumacher said on Tuesday.

After taking office in July, the chief executive said the company would focus on 30 key brands, which account for 70% of its sales, that it would strive to improve its gross margin and that it would not would undertake any major acquisition.

“We are committed to implementing our productivity program in consultation with employee representatives, and with respect and care for those of our employees who are affected by these changes,” he added.

Last month, Hein Schumacher told Reuters he would not hesitate to streamline Unilever’s 127,000 employees.

(Reporting by Eva Mathews in Bangalore and Richa Naidu in London; by Dimitri Rhodes, editing by Kate Entringer)

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