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Cadbury to cut workforce by 15% | Cadbury to cut workforce by 15% |
(10 minutes later) | |
Confectionery and drinks giant Cadbury Schweppes has announced plans to cut 15% of its staff by 2011. | Confectionery and drinks giant Cadbury Schweppes has announced plans to cut 15% of its staff by 2011. |
The UK firm said the 7,500 jobs will go as part of a cost reduction plan that will also see about 15% of its manufacturing sites close. | |
Cadbury, which employs 50,000 people globally, has yet to say whether any of its UK plants will be affected. | Cadbury, which employs 50,000 people globally, has yet to say whether any of its UK plants will be affected. |
The firm's headquarters are in London, while its main chocolate-making factory is based in Bournville, Birmingham. | |
BBC Business Editor Robert Peston said the Bournville site was likely to be largely unaffected. | |
Cadbury has another chocolate plant in Keynsham near Bristol, and a cocoa processing operation in North Wales. | |
It further has a milk-processing facility in Herefordshire, a sugar factory in Sheffield, and a medicinal confectionery business in Crediton, Devon. | |
Under pressure | |
The reorganisation will cost Cadbury around £450m in a one-off charge. | |
Yet it said that as a result, its profit margins should increase from 10.1% to the mid-teens by 2011. | |
Cadbury also said it would most probably now sell off its drinks business as part of ongoing plans to split the company in two. | |
The company said unnamed parties had expressed an interest in buying the Schweppes unit, which produces drinks such as Dr Pepper and 7-Up. | |
Following the expected sale, it said it would rename itself simply Cadbury. | |
The firm has been under pressure after poor European sales and a costly salmonella scare in the UK - which led to a million chocolate bars being recalled - saw profits fall sharply last year. |