21 August, 2008 – Cadbury has confirmed that it is to cut its workforce in Australia and New Zealand by 330 by the end of 2010 after announcing plans to modernise three plants there.
The confectionery giant said the job cuts would occur as a result of AUS$135 million (EUR79.7 million) worth of investment to factories in Tasmania and Victoria in Australia, and Dunedin in New Zealand. The move comes after Cadbury announced in June 2007 that it would be cutting 15% of its workforce.
The company said the investment would improve efficiency and production at the three chocolate manufacturing sites, transforming each into what it called a ‘Centre of Excellence’. Each will specialise in producing a specific types of chocolate; moulded chocolate blocks at the Tasmania plant; chocolate bars at Victoria; with Dunedin concentrating on assortments, said the company.
Rajiv Wahi, Chairman Cadbury Schweppes ANZ & President, Cadbury Schweppes Asia Pacific said: "Our Australian and New Zealand businesses remain the cornerstone of our operations in Asia Pacific and central to our future growth ambition for the region. Having reviewed all of the options available to us through our global operations, I am confident that the strategy being recommended today is the right option to meet our future needs, at the same time allowing us to capitalise on the efficiencies and capability available to us from within our Australian and New Zealand manufacturing operations".
Cadbury Schweppes Managing Director Confectionery ANZ, Mark Callaghan, said the company was pleased to put forward a proposal that, if it proceeds, would help the Group drive profitable growth and deliver on its margin improvements, which would help secure Cadbury's manufacturing future at these three sites.
He said: "In order to compete in the extremely competitive confectionery sector in the future, we need to make changes now. When implemented these changes would reduce complexity, remove duplication and improve capacity, allowing us to be more innovative and responsive to consumer needs.
"We considered several options and believe that continuing to manufacture at all three sites is in the best interests of the company, our people and the communities in which we operate.
"As market leader, we clearly remain committed to both the Australian and New Zealand markets. Cadbury will continue its long history of manufacturing in both countries so consumers can continue to enjoy their much loved brand," Mr. Callaghan said.
A Cadbury statement said: “Unfortunately, as a result of these efficiency and productivity improvements, there will be an impact on jobs, and by the end of 2010, we would require approximately 330 fewer permanent roles across the three sites.”
The company confirmed it was entering into a consultation exercise with its New Zealand workers and hoped to make a final announcement in September.