Cadbury has today announced 580 jobs are to go worldwide as it initiates the latest phase of its cost-cutting operations through the “vision into action” scheme announced last year.
The purple fashioned confectionary giant, maker of brands such as Dairy Milk, Trebor, Trident and Bassett’s are taking steps to shore up its profitability despite a strong performance in the face of the credit crunch. The latest move will mean “strong” savings in 2009, the company said.
Announced alongside the cuts, revenues for Cadbury globally are up seven per cent since the beginning of the year and the company said it expects this to figure to be consistent at the year-end. Its underlying profits though, are expected to be up 12 per cent when international currencies are converted back to sterling.
Rising input costs, predominantly in cocoa, have been offset by higher product prices and Sitzer said: “We operate in a resilient category with a strong business model. Our revenue performance remains robust despite the weaker economic background.”
Analysts said less expendable cash in consumer’s pockets may actually be helping Cadbury, even with mark-ups, as people look for “affordable treats”.
In restructuring its business Cadbury will cut a layer of senior management with its seven regional units to begin reporting directly to chief executive Todd Sitzer. Two hundred and fifty of the cuts will be made through this venture.
The remaining 330 severances will be suffered in Australia and New Zealand.