14/02/2010- Cadbury’s – there is trouble ahead

A WEEK or so ago we reported on the take-over of Cadbury’s by the American multinational, Kraft Foods. 


We noted that the future of Cadbury’s 4000 plus workforce now lay in the hands of Mrs. Irene Rosenfeld, the Chief Executive of Kraft Foods. We predicted that there may be troubles ahead for Cadbury as Kraft wanted "meaningful cost savings" as a result of the merger – with a $675 million cost-saving plan being mooted.

We also pointed out that during the course of the takeover bid, no specific assurances over jobs had been given.  Indeed, staff numbers at Cadbury's head office in Uxbridge, West London, were expected to be cut.

However, no-one could have predicted that Rosenfeld - described as ‘a fearsome achiever in business’ - would have acted so swiftly and ruthlessly.  For Kraft have just announced that it will close Cadbury's Somerdale factory in Keynsham (near Bristol).

The plant will be closed sometime next year.  Around 100 workers were made redundant at the beginning of this year.  That leaves another 400 to be thrown onto the scrapheap.  Production will move to Cadbury plants at Bournville, near Birmingham, Poland and France.