Mondelēz to cut jobs amid $60m investment in Australia
Mondelēz International has announced a A$75 million ($59.4m) investment plan for it Cadbury Claremont plant in Australia, which will result in 50 job losses.
The company says it will spend the money on new technologies, equipment and automation over the next 18 months, as well as increase the skills and capabilities of its employees and ensure its teams are the right size.
However, around 50 of the 450 people team will be leaving the business by the end of the year, with the majority likely to be voluntary redundancies.
Amanda Banfield, area vice president, says “Our team here has worked hard to help us become more efficient, cut costs and improve our competitiveness and as a result, we’ve reduced the cost of converting raw materials into a block of chocolate by 12%.
“But while progress has been made, increasing local and global competition, low domestic growth, rising costs, and Australia’s distance from overseas markets make it difficult to compete against the likes of European factories with lower costs.
“To remain competitive, we need to improve our conversion costs by 30%, plus continue to raise the bar as competition increases further.”
Jason Bonisoli, manufacturing director of chocolate, adds, “The team here has helped us deliver significant waste and cost reductions, safety improvements, and they are learning new skills and reporting increased levels of engagement.
“But we want to keep making great tasting, affordable products here in Tasmania, and the changes we have announced today will create scale and drive costs down to position us to compete for export volume and secure local jobs and the future of manufacturing in Tasmania.”
The Claremont manufacturing site was the first Cadbury operation set up outside of the UK in 1922. Milk processing at the Burnie plant has operated since 1947 and the company buys around nine per cent of Tasmania’s milk supply.
Some 90% of Mondelēz International’s products sold in Australia are made in Australia.
Earlier this year, the company revealed plans to close its factory in Dunedin, New Zealand, which would end the snack company’s manufacturing operations in the country.
