Mondelez International has stressed the 200-plus jobs to be cut at Cadbury would “secure the next generation of manufacturing” at Bournville, the flagship site of the chocolate unit.
The US-based group said the voluntary redundancies would make Bournville competitive on costs. The company had previously committed to investing GBP75m (US$114.35m) in Bournville’s production, including the introduction of four lines that would replace existing out-of-date lines.
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A spokesperson for the Cadbury Creme Egg maker told just-food: “From the outset, we have been clear that to secure the GBP75m investment and therefore the next generation of manufacturing at Bournville, we will need to become cost competitive. During consultation, we agreed that this would mean fewer people working in Bournville in the future than there are today.”
A total of 255 positions are being eliminated at the Bournville site, a spokesperson said. Fifty of these have already left, meaning an additional 205 people are taking voluntary redundancy with the average redundancy payout reportedly totalling around GBP100,000. “The roles will be from across manufacturing in Bournville,” the spokesperson added.
“We are pleased that the consultation with colleagues and their representatives is progressing in a positive and constructive manner. Our preference is always to look for voluntary redundancies to achieve any reductions. Through conversations with our workforce, a number of employees have asked for voluntary redundancy, indicating that we can achieve the necessary reductions through a voluntary approach.”
Mondelez has previously suggested production costs at Bournville were twice as high when compared with its competitors and even with other subsidiaries. Restructuring at the plant is designed to tackle this issue and the spokesperson said today that “we need everyone to play their part” to secure the future of the site. Mondelez did not comment on whether the job cuts signalled the end of the restructuring process.
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