Stitzer Chews a Chunk Out of Cadbury

16 October 2008

LONDON: Cadbury is to remove its layer of regional managers and 250 of their staff next year, a move ceo Todd Stitzer (pictured) says will mean decision-making at the company will accelerate from "sixty miles-an-hour to ninety". Thanks to his assumptiohn of direct control of the company's various units.

As part of the restructuring programme, Cadbury will increase its number of regional divisions in the UK from four to seven.

Says Stitzer: "There are some very strong business-unit leaders underneath the regions. It will be more effective to have a direct relationship with them."

The confectionery giant will also reduce the number of products it sells in Australia and New Zealand by almost a third, and will merging its three European research laboratories. 

Cadbury recorded a 6% increase in revenues in the third quarter of 2008, and growth of 7% for the first half of the year; but also reports that the amount it pays for commodities is due to increase by between 6% and 8% next year.

Data sourced from Wall Street Journal Online; additional content by WARC staff