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.

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