Cadbury axes 50 Hobart jobs, invests $75 million into factory

Mondelez International will cut 50 jobs from its Hobart Cadbury factory. At the same time the company has announced plans to invest $75 million into upgrading the site.
Over the past five years, Mondelez, which is responsible for the Cadbury brand in Australia, has invested AUD $110 million into the Tasmanian factory. It has now committed another AUD $75 million to be spent over the next 18-months, but will axe 50 jobs as part of the new upgrade.
Mondelez International Area Vice President, Amanda Banfield, explained the investment and job cuts are about competing with European and other factories that have lower costs.
“To remain competitive, we need to improve our conversion costs by 30 per cent, plus continue to raise the bar as competition increases further,” Banfield said.
It is expected the 50 employees will cease employment by the end of 2017. Mondelez said the majority of job losses should be voluntary redundancies.
Manufacturing Director of Chocolate at Mondelez, Jason Bonisoli, said the changes were necessary to allow Cadbury manufacturing to remain in Tasmania.
“The changes will help sustain Cadbury’s position as market leader, innovating and making new products that meet consumers’ requirements,” he said.
In May 2017, Mondelez said it was considering closing New Zealand’s Dunedin Cadbury factory and moving its production to the Tasmanian factory.
In May 2015, Mondelez axed 80 jobs from the Cadbury Hobart factory.
Related articles
- Mondelez considers moving NZ Cadbury factory production to Australia
- Cadbury cuts Tassie jobs in Mondelez cost-cutting squeeze
Deputy Prime Minster Barnaby Joyce has this week announced a $550 million support package for Austra...
ALDI Australia has released a new report - ‘Making a Good Difference: how ALDI contributes to the Au...
The Foodservice Australia show will be held from 8-10 November 2020 at the ICC Sydney. Discover ove...
Jalna has decided for now to bring back Kosher certification of its products.
Giving the gift of gourmet food is a treasured treat at any time of year, but especially for festiv...
With 1.5 billion cups of coffee consumed a day, Change Coffee – World Vision Australia’s first soci...
Krispy Kreme has joined with Nutella to launch a new range of doughnuts sold through 7-Eleven conven...
Woolworths has mentioned potential future plans for a new food service concept store in a recent cou...