Cadbury cuts middle layer of management; puts CEO in driver’s seat
LONDON Cadbury today reported that it is revamping its management structure removing a layer of management and handing over the reins to chief executive officer Todd Stitzer to steer the company’s operational divisions.
“Our four region operational structure will be eliminated, leaving seven business units (listed in Appendix A) which will report directly to [Stitzer],” Cadbury said in a press statement. “At the same time, we are strengthening our global chocolate, gum and candy category structure, further increasing our focus on category development.”
The change will extract the company’s current regional management structure, removing layers and spreading out organizational tasks over other layers. The company hopes that the change will provide “faster decision making, improve in-market execution and ensure a stronger alignment of category strategies and commercial programs,” it has stated.
The removal of the management layer will affect 250 positions, many of them senior managers. Cadbury said that the changes were following a plan started in 2007 to restructure operations.
Pepsi to close six plants; cut 3,300 jobs
NEW YORK PepsiCo announced Tuesday it plans on eliminating 3,300 jobs and closing six of its plants within the next few months. The company suffered a 9.5 percent drop in third-quarter profit and expects to take even more of a hit due to the surging U.S. dollar.
By cutting approximately 1.8 percent of its global work force, PepsiCo estimates it will save $350 million to $400 million in 2009 and pretax savings of more than $1.2 billion throughout the next three years.
The major beverage conglomerate plans to focus on its most popular product—carbonated soft drinks—and improving its marketing campaign, rather than following its recent strategy of branching out toward pricey alternatives, including energy drinks, sparkling juice and ready-to-drink teas.
“We’re looking at re-engaging consumers, keeping the ones we have and making sure we’re getting additional consumers into the fold,” chief financial officer Richard Goodman said.
Schnucks buys St. Louis area grocery stores
ST. LOUIS Three supermarkets in the Illinois portion of the St. Louis metropolitan area have come under the Schnucks banner.
The supermarket chain has acquired the O’Fallon Hart Food & Drug, the Bethalto Park N Shop and the Godfrey Park N Shop. The first two stores will be changed to Schnucks stores, while the third will close, but employees at all three stores will be offered jobs with Schnucks.
The acquisition gives Schnucks a total of 105 stores.