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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 company-wide cost reduction plan that will also see about 15% of its manufacturing sites close. 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.
With its headquarters in London, it has two main chocolate-making factories in Birmingham and Keynsham near Bristol. The firm's headquarters are in London, while its main chocolate-making factory is based in Bournville, Birmingham.
It also has a cocoa processing plant in North Wales, a milk processing facility in Herefordshire, a sugar factory in Sheffield, and a medicinal confectionery business in Crediton, Devon. BBC Business Editor Robert Peston said the Bournville site was likely to be largely unaffected.
Cadbury Schweppes also said it was now most likely that its ongoing plans to split in two would see its drinks business sold off. Cadbury has another chocolate plant in Keynsham near Bristol, and a cocoa processing operation in North Wales.
It said unnamed parties had expressed interest in buying the Schweppes unit. It further has a milk-processing facility in Herefordshire, a sugar factory in Sheffield, and a medicinal confectionery business in Crediton, Devon.
The firm has been under pressure since 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. 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.