Type
Internal restructuring
Country
United Kingdom
Region
Location of affected unit(s)
Bournville (Birmingham), Chirk (North Wales) and Marlbrook (Herefordsshire)
Sector
Manufacturing
Manufacture Of Food And Beverage
Manufacture Of Food Products
10.82 - Manufacture of cocoa, chocolate and sugar confectionery

200 jobs
Number of planned job losses
Job loss
20 jobs
Number of planned job creations
Job creation
Announcement Date
6 December 2011
Employment effect (start)
1 March 2012
Foreseen end date

Description

Kraft Foods has announced plans to cut 200 jobs in Bournville (Birmingham), Chirk (North Wales) and Marlbrook (Herefordsshire) despite investing £44m for the expansion of its UK plants. The 200 announced jobcuts will mean that one in seven UK chocolate manufacturing jobs at Kraft will be cut.

The cuts will be implemented through redeployment and voluntary redundancies starting from next March and will proceed over the next two years. Additionally, according to the company 20 jobs will be created at the Sheffield plan.

Union Unite is reported to criticize Kraft's information policy on the job cuts, claiming that some employees have heard from the restructuring plans through the media. Kraft had committed to refraining from plan closures and compulsory redundancies for blue-collar workers for two years in the UK in March last year. The company claims that the commitment remains valid given the planned redundancies will not be compulsory.

In the UK Kraft currently employs 5,500 people, 1,400 in its chocolate manufacturing business.


Sources

  • 6 December 2011: Financial Times
  • 6 December 2011: BBC News
  • 6 December 2011: The Guardian

Citation

Eurofound (2011), Kraft, Internal restructuring in United Kingdom, factsheet number 72830, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/72830.