Thousands of job cuts if Kraft takes over Cadbury

Unite, the UK largest union has warned that Kraft's hostile takeover bid of the confectioner Cadbury would put 30,000 jobs at risk because of massive debts held by the US firm.

Unite has warned that Kraft who are more than £22 billion in debt will be desperate to cut cost if they are successful in their takeover proposition. The union claims that over 7,000 jobs would be slashed if the control of the UK firm is shifted to the US and another 20,000 jobs would be lost through the wider supply chain.

Union Unite's officer for the food and drinks industry, Jennie Formby says that Kraft are looking to reduce their mammoth debts and history has shown that they look straight to slashing payroll to cover borrowings.

'Between 2004 and 2008 Kraft cut 19,000 jobs and closed 35 sites to help pay down its debt'

Despite the bad press, Kraft is continuing to report that its business is flourishing, increasing profit forecasts for the second time in three months. A statement released by a Kraft spokesman stated that the firm are 'confident that their bid is going to be better for UK manufacturing jobs than Cadbury remaining independent or being broken up by another company'.

Job Centre Vacancies says: This article highlights the need for acquisition transparency. As it stands the interests of banks and the boardrooms come far before those of loyal workers and local communities. Firms and investors should expect to be scrutinised if they are only motivated to make a quick buck without any guarantee of jobs and future investment.

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