Cadbury has admitted that more job cuts and factory closures could be on the cards as commodity costs continue to rise.
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The UK-based confectionery giant is in the middle of a restructuring programme first announced last summer and which has seen production facilities closed and jobs lost in a bid to boost margins.
Last June, Cadbury said it would axe 15% of its workforce and close 15% of its manufacturing facilities by 2011 to cut costs and boost margins.
However, a Cadbury spokesperson told just-food today (31 July) that the company is reviewing its business in light of rising costs.
“In light of commodity costs going up and the economic headwinds that companies are facing, we are looking into accelerating the rate of change to hit those same targets,” the spokesperson said. “That would mean reevaluating our cost structure and reappraising our portfolio.”
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By GlobalDataThe spokesperson refused to rule out further cuts on top of those announced last June. “We will give feedback in the fourth quarter of this year,” the spokesperson added.
Yesterday (30 July), Cadbury revealed it had improved margins during the first half of the year as it booked higher profits and sales.
