Arguably the UK’s most famous chocolate company, Cadbury has recently revealed expected job cuts at its Birmingham head office, despite having recently invested over £70 million in its Birmingham headquarters. This investment money is to go towards improving machinery at the site. But the money pumped into investment means there must be cuts elsewhere, evidently resulting in a number of job cuts for employees.
It is unclear just how many jobs could be lost, but it is likely that employees will face redundancies. The organisation is currently in talks with its workforce and it is hoped there will be voluntary redundancies as opposed to compulsory ones.
Cadbury is owned by Mondelez International, who believe the investment is vital to the company’s future. The factory desperately needs updating with significantly old machinery still being used. By investing a chunk of money into improving the factory, the Bournville site will be up amongst the best chocolate manufacturers around the world.
None of the changes are set in stone and the company is still in talks regarding the future of the business. But it is likely that job cuts will occur and are a necessity for company to be able to compete with other chocolate makers. As it currently stands, the costs to run the Birmingham factory are double the amount in comparison to other leading chocolate manufacturers.
Unfortunately, job cuts are vital in order for this investment to go ahead. Although this is sad news for employees now, it might mean that Cadbury will be able to open up more job opportunities in the future, with the possibility of upping the company’s production levels. But before this can happen, the future of the factory must be secured by improving machinery and developing chocolate research.
The Birmingham factory currently employs nearly 1000 staff members, many of whom could be facing redundancy in the near future.