Kraft Foods is reportedly moving parts of Cadbury into its European holding, based in Switzerland, which UK reports say could cost jobs but save the US food giant millions of pounds in tax payments.

Reports this weekend said Kraft will switch some of its Cadbury functions to Zurich, where its European head office is based.

According to the BBC, Kraft confirmed it was “integrating” Cadbury into its “European model involving a company based in Zurich together with local companies in country markets”.

A Kraft spokesman told the BBC: “This involves the transfer of certain roles to Switzerland, through the majority of UK-based roles will remain in the UK.”

Officials at Kraft’s European office in Zurich could not be reached for immediate comment.