By the end of 2018, Mondelez are set to cut 1,400 jobs in Brazil after announcing that they will close two of their manufacturing plants there, while transferring their production to two other facilities in the county.
The two sites in question are Bauru and Piracicaba, both in Sao Paulo, and the Bauru site currently produces candy, chocolate, powdered beverages, gum, cream cheese and desserts, while the Piracicaba plant manufactures biscuits.
“With this strategic business decision, the company will concentrate its production in Curitiba (Paraná) and Vitória de Santo Antão (Pernambuco) – factories that are already operating in a multi-category model,” said Mondelēz.
By doing this, the Curtiba and Vitoria de Santo Antao locations will subsequently become the two largest manufacturing sites in Latin America for Mondelez.
Mondelez also pointed out that these changes are part of their global strategy.
“To ensure sustainable growth and build a world-class supply chain, the company reviewed its manufacturing footprint and has decided to intensify and optimize its multi-category manufacturing model,” said Mondelēz.
However, despite shutting the two plants down, Mondelez are adamant that their company’s manufacturing volume both in and for Brazil will remain the same, while consumers will still be able to purchase their brands.
“All employees will receive a benefit package that exceeds what’s required by the law, as well as be eligible for an outplacement plan, with a solid career transition support, helping them to find a new opportunity in the market,” said the company.
“Additional training, job fairs and workshops will also be internally promoted,” it said.