Job losses likely as Kraft buy Cadbury
January 20, 2010
Chairman of Cadbury, Roger Carr has warned that Prime Minister Gordon Brown is not able to guarantee that there will be no job losses at the firm. After it was sold to U.S. food giants Kraft, Mr. Brown was quick to tell Cadbury employees that he was determined to make sure that their jobs were secure at a time when many are extremely nervous about becoming redundant. He also said that the government was determined that the levels of investment made in Cadbury would continue under its new ownership.
Trade unions are not so sure and have warned that Kraft’s takeover now puts at risk the jobs of around 7,000 Cadbury employees. Mr. Carr says that it is likely that the sale of the chocolate manufacturer will result in the loss of jobs but went on to say that in his opinion Kraft would not have paid £11.9 billion for a company just to break it up. Although no guarantees have been made, Mr. Carr said that he had spoken to the chairman of Kraft and that he got the impression that his intention was to invest in the company rather than run it down.
Mr. Carr said that the decision to sell Cadbury to the Americans was not a decision that was taken lightly. He went on to say that it was a sad decision to have to make but that the board was employed by investors to make the best financial decisions possible. He pointed out that they had managed to hold out until the price was right.