Type
Internal restructuring
Country
United Kingdom
Region
West Midlands;
Location of affected unit(s)
Birmingham
Sector
Manufacturing
Manufacture Of Food And Beverage
Manufacture Of Food Products
10.82 - Manufacture of cocoa, chocolate and sugar confectionery

205 - 255 jobs
Number of planned job losses
Job loss
Announcement Date
15 January 2015
Employment effect (start)
15 January 2015
Foreseen end date
31 December 2016

Description

Food manufacturer, Cadbury will cut 205 jobs from its Bourneville plant in Birmingham. To date, 50 workers have already left with the remainder set to depart over the next two years. Management has said the cuts were necessary to make Bournville more competitive and to secure the factory’s long-term future. As part of the plans, equipment will be updated and new production lines will be added to the plant. A total of 905 workers are currently employed at the factory which makes products including Dairy Milk, Crème Eggs and Wispas. Management has been in formal consultation with Unite union and Cadbury’s staff. Unite has negotiated a deal for the workers where there will be no compulsory redundancies. Those employees who accept voluntary redundancy will receive between four and six weeks of salary for every year of services, with an average redundancy payment of around £100,000 depending on their length of service. Many of the workers who are likely to take voluntary redundancy are aged 55 years or older. Cadbury opened its first shop in Birmingham in 1824.  By 1930 it had become the 24th largest manufacturing firm in Britain. Cadbury’s was purchased via a hostile takeover by US food giant Kraft in 2010 (see earlier factsheet from 23 March 2010). Kraft, in turn, is owned by the Mondelez International conglomerate.


Sources

  • 15 January 2015: BBC News (www.bbc.co.uk)
  • 16 January 2015: Chartered Institute of Personnel & Development (CIPD) webblog (www.cipd.co.uk)

Citation

Eurofound (2015), Cadbury, Internal restructuring in United Kingdom, factsheet number 78139, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/78139.