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Unilever, which owns Marmite and Dove soaps, will cut around 7,500 jobs worldwide as part of a wide-ranging three-year cost-cutting plan.
The group also announced it would spin off its ice cream business, which includes the Wall's, Ben & Jerry's and Magnum brands.
The food and household goods giant said the spin-off will begin immediately and should be completed by the end of 2025.
Unilever said the reorganization will help it “do less and do better.”
Unilever said the cuts, which mainly affect office staff, represent more than 5% of its 128,000 global workforce, and will result in around €800m (£684m) over the next three years. Aiming to save money.
Unilever employs 6,000 staff in the UK, making ice cream in north-east Gloucestershire, Marmite and Bovril in Burton-on-Trent and pot noodles in Newport.
The ice cream division, whose other brands include Vienetta, Carte d'Or, Cornetto and Bryers, achieved sales of €7.9m (£6.75m) last year.
However, Unilever said the business requires a frozen goods supply chain and is highly seasonal, so it has less in common with other consumer product lines.
The company's chairman, Ian Meekins, said: “Delivering ice cream separation and productivity programs will help create a simpler, more focused and better performing Unilever.”
“It will also create a world-leading ice cream business with strong growth prospects and an exciting future as a stand-alone business.”
Unilever shares rose 5% following the announcement.
Hargreaves Lansdown's Matt Blitzman said the move was “not a huge shock” as the ice cream division had been underperforming.
The division will most likely disappear through a demerger, in which case current shareholders would receive shares in a newly listed company. However, the group said it was not ruling out other options, such as a direct sale of the business.
“It doesn't seem like a buyer has been decided on, so it looks like a company split will be the option,” Blitzman said. “The investors can then decide whether to keep the new ice cream business or sell it to the market.”
