Cadbury Schweppes to cut 7,500 staff

Cadbury Schweppes said it planned to cut 15 per cent of its jobs and factories and was more likely to sell than spin off its …

Cadbury Schweppes said it planned to cut 15 per cent of its jobs and factories and was more likely to sell than spin off its US drinks unit.

The British group said today its new confectionery strategy would mean cuts in its 50,000 workforce and 60 factories as it emerges as a pure confectionery player similar to its US rivals.

Cadbury Ireland said it has already reached agreement on the cutting of 450 staff from its workforce of 1,100 within the next three years.

The London-based company - maker of Dairy Milk chocolate - was announcing its confectionery-alone strategy as it decided on a likely sale of its Dr Pepper and Snapple drinks business and a return of capital to shareholders.

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The group, to be renamed Cadbury after the expected drinks sale, raised its annual revenue growth goal to 4 to 6 per cent from 3 to 5 per cent and aimed to lift trading margins to the mid-teens percentage by 2010 from 10.1 per cent in 2006.

The company said it had made a strong start to 2007 in both confectionery and beverages.