Cadbury workers face uncertainty

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The "radical" restructuring, which will increase the company's focus on key brands such as Trident gum, comes hard on the heels of a previous job-cutting exercise, which has just closed 30 factories over four years.

Tuesday's move will bring a 15% reduction in both headcount and factory numbers worldwide - equivalent to around 10 sites and 7,800 jobs. No details of where the axe will fall have been given, but the T&G section of the union Unite said the potential job cuts were a "grave concern".

The company has around 6,000 of its 52,000 confectionery workers in the UK, including at Bournville and Keynsham near Bristol. The operational HQ at Bournville is likely to be protected from the cost-cutting as it has received millions of pounds of investment in recent years.

Cadbury did reveal that it would move its Mayfair head office to a new location west of London, while it will also identify additional opportunities for outsourcing in back-office processing, IT and chocolate production.

Chief executive Todd Stitzer announced the changes amid pressure to improve profit margins, which have been much weaker than those of industry rivals.

Margins fell from 10.8% in 2005 to 10.1% in 2006 but the company said it hoped to achieve a figure in the mid-teens by 2011, with revenues set to grow by between 4% and 6% a year - rather than the 3% to 5% previously targeted.

Mr Stitzer said the overhaul would look to realise the group's "under-exploited potential", by managing the business more centrally to focus on fewer, bigger and more value-creating initiatives.

Cadbury will concentrate on its top 13 brands, in particular those which it identifies as having the strongest growth potential - Cadbury, Trident, Halls, Green & Black's and The Natural Confectionery Company.

Mr Stitzer said: "Over the past three years, we have made great strides in improving our business performance. The plans announced today represent the next step in transforming our confectionery company from being the biggest global confectionery company to being the biggest and the best."