The president of Kraft Foods UK and Ireland said the company will be “sad” to leave Cheltenham after the firm today (11 May) announced the closure of it European headquarters.
The maker of Toblerone chocolate and Oreo cookies will keep open Cadbury’s bases in Uxbridge, north-west London and Bournville in Birmingham as it continues to reshape its business in the wake of the Cadbury takeover.
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However, the Cheltenham site, which employs 450 staff, will close, with changes expected to take place over the next 18 months.
Nick Bunker, president of Kraft Foods UK & Ireland said the UK is one of the company’s “most important” markets.
“The skills and facilities we have here will enable us to build the UK’s favourite snacks and confectionery company and to drive global innovation for two of Kraft Foods’ largest categories worldwide, namely chocolate and coffee.”
He added: “We would be very sad to leave Cheltenham and we would provide significant resources to support employees from all affected sites during the move.”
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By GlobalDataSubject to consultation with employees, Kraft Foods said it will move from its office in Cheltenham in 2011 and management and staff will transition to the new offices over the next 18 months along with customer service teams from the company’s office facilities in Sheffield and Banbury.
The company has given no indication of the number of jobs that will be axed aspart of the news.
“The business rationale is compelling,” Bunker said. “Having our R&D, customer service and support functions working side-by-side will enable us to share more insights, act more quickly and execute more flawlessly, thereby accelerating our growth.”
Bunker added that Kraft will “consult fully” with all affected individuals about the “implications and options available” before a final decision is taken.
Unite, the union representing workers at the UK confectioner, however believes the site closure shows Kraft workers are now paying the price for the hostile purchase of Cadbury.
Jennie Formby, national officer for Unite, believes the move shows the pressure Kraft is under to “recoup the massive bill” it ran up to buy the UK confectioner.
“It has only been a matter of months since Kraft took over Cadbury but it now looks to be pressing ahead with closures. Just as we feared, the only way for Kraft to pay down its massive debts is to continue with its practice of job losses through site closures and rationalisations,” Formby said.
“Kraft says they’ll give the Cheltenham workforce a choice to transfer, but when your new place of work is either Uxbridge or Bournville, that is Hobson’s choice. Announcements like today’s only give workers further concern about Krafts plans,” she added.
Kraft yesterday also announced the closure of two other sites in Europe – Cadbury’s continental European office in the Swiss town Rolle, along with an office in Barcelona.
Kraft and Cadbury each had a site in Barcelona but a decision is yet to be made on what location will be closed.
