Mondelez has announced staff cutbacks are likely as a result of the $124m investment into its Cadbury production site in Bournville, UK

Mondelez has announced staff cutbacks are likely as a result of the $124m investment into its Cadbury production site in Bournville, UK

Mondelez International's latest investment into its flagship UK Cadbury site will mean job cuts, the company has confirmed.

A spokesperson for Mondelez in the UK told just-food today (24 January) the GBP75m production project at Bournville "is likely to lead to a reduction in headcount."

The company has been consulting with staff over the past week about the changes that will be implemented as a result of the investment announced yesterday.

The spokesperson said there was "no indication as to how many people" would be affected nor was there a timeframe on when cuts would be made.

"The proposal is for a three-year upgrade. Consultations have started with staff and these will be ongoing for weeks, perhaps months," he said.

"We've been open and honest with staff. It's all subject to consultation which is why we've deliberately not put in numbers right now. There is some speculation going round, but that's based on absolutely nothing. No conversations have taken place with anybody about numbers, including the union."

Mondelez plans to revamp Bournville's production, including the introduction of four new lines which would replace existing out-of-date lines.

When asked the reason for the changes to the operations, the spokesperson said production costs at the factory could be twice as high when compared with Mondelez's competitors and even with other subsidiaries.

"This is about making a more modern, flexible and competitive factory," the spokesperson said.

He added it was not "just about how many people work here" but the company was also looking at ways of reducing its energy usage and waste among other initiatives.

Officials at the Unite union were not immediately available to comment. However, yesterday, Unite issued a statement saying it was "working with Cadbury to get the best deal possible for workers during this restructuring".