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January 19, 2010    

Job losses at Cadburys after Kraft takeover

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by Kay Murchie
”Job

According to the BBC, there will be job losses at Cadbury after it agreed to an £11.7 billion takeover by US food giant Kraft.

The news of the takeover came after Kraft has already made offers for the 186-year-old British company but they were rejected by Cadbury’s board.

Cadbury’s board is supporting the latest bid from Kraft and is set to advise shareholders to accept the offer of 840p a share.

However, Roger Carr, chairman of the British confectioner has today told the BBC that job losses are an “inevitability” at the company.

Mr Carr said jobs would go at Cadbury’s head office in Uxbridge, London.

Cadbury has a global workforce of 45,000 with over 9,000 in Britain and as news of the takeover emerged, the Unite union warned that Kraft plans at least 10,000 job cuts worldwide in order to cut costs.

In 1993, Kraft, which is renowned for brands such as Kenco coffee and Oreo biscuits, bought British chocolate company Terry’s and closed its York factory in 1995.

However, at the time of the first bid in September, Kraft said a takeover would secure UK jobs, while keeping open Cadbury’s Somerdale factory, which is currently scheduled to close.

Kraft also said the deal would invest in Cadbury’s plant in Bournville, Birmingham.

A combination of the two firms is set create a “global powerhouse” in food and confectionery, with annual sales of around US$50 billion, according to Kraft.

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