Mondelez Layoffs: All You Need To know

Mondelez Layoffs

In the US, a bakery owned by Enjoy Life Foods is being closed by Mondelez International. The snack manufacturer informed the state of Indiana of the shutdown of the Jeffersonville, Indiana, facility. According to the petition, many layoffs will occur, with the first one hitting 105 employees on July 3. About 166 jobs will be lost after the rounds of layoffs are completed in the following year. There was no justification for the closure in the filing.

News of layoffs is not uncommon in the constantly changing world of business. Rumors of potential layoffs at Mondelez International, a multinational snack behemoth, have recently made headlines. Employees and observers in the industry are eager to learn more as the uproar increases. This article will examine the most recent information about Mondelez and its probable layoffs.

About the company

The Chicago-based global confectionery, food, holding, beverage, and snack food firm is Mondelez International, Inc. Its brand name, Mondelez International, also knows it. Mondelez operates in around 160 countries and generates annual revenues of about $26 billion.

The business was started by Chicago-based Kraft Foods Inc., established in 1923. The current company was founded in 2012. At the same time, Kraft Foods changed its name to Mondelez and kept its snack food division while spinning off its grocery division to form Kraft Foods Group.

The company’s mission is to inspire individuals to snack correctly. By providing the appropriate snack at the right time in the right way, they will set the global standard for future snacking.

The 80,000+ employees who work for the organization globally are essential to its success. Their values and leadership commitments shape the culture. It includes loving customers and businesses, growing every day, and doing what is right. These principles serve as a foundation for their activities and decisions. ” Great brands and great people—they are precisely that.

Mondelez Restructuring

Our snacking habits and waistlines are filled by the multinational snack company Mondelez. Its cutting-edge foods have kept us on our toes. They never stop surprising us, whether with mouth-watering Oreo varieties or milk chocolate that melts in our mouths. Every time we explore the grocery store sections, it feels like a treasure hunt. Mondelez’s international food business is undergoing significant adjustments with its recent restructuring initiatives.

Mondelez has decided to shuffle its snack deck. This is a move that might be comparable to a high-stakes poker game. By restructuring, the company hopes to breathe new Life into itself. Along with that, it maintains its lead in the snack market. Prepare for a whole new snacking experience! It will embrace us with new tastes, unique packaging, and fascinating recipes.

The iconic food brands created by Mondelez have endured for decades. Even the most traditional desserts need a modern update, though. Along with bringing back old favorites, this restructure will also present a variety of brand-new delicacies that will delight our taste buds.

Mondelez focuses on the promotion of sweet synergy across its brands. This is to leverage the power of snacks fully. They want to develop snack combinations that are more than the sum of their parts by promoting collaboration and idea sharing.

Embracing Change

Say farewell to the days when a friendly salesperson from Mondelez would knock on your door and lure you with baskets of delectable delights. The worldwide conglomerate of food, beverage, and candy manufacturers has unexpectedly chosen to give up Direct Store Delivery (DSD). It is done as part of its operational plan.

By doing away with the conventional DSD process, Mondelez is shaking up the sector. While some may doubt this decision, Mondelez sees it as a chance to improve efficiency. It will also reduce expenses and respond to shifting market trends. With this choice, the business hopes to streamline its supply chain, boost productivity, and provide customers with a better experience.

Mondelez wonwillandosupportedents. The company has developed alternate plans, while DSD will no longer be a factor. This is done to guarantee that consumers will still be able to enjoy its delectable sweets. Mondelez seeks greater market penetration, improved accessibility, and a seamless shopping experience. They are going to achieve this by utilizing established distribution networks.

The decision to remove DSD benefits everyone, even though the news may seem problematic. Mondelez expects to pass on its savings to its customers by streamlining its distribution systems. They aim to cut expenses related to door-to-door delivery.

You can be sure Mondelez will continue providing the delicious snacks you’ve come to love. While moving away from DSD may involve some changes, it is a forward-thinking strategy. 

It is mainly designed to address the needs of a shifting market. Keep your cupboard stocked because, even though they are coming differently, snacks are still coming!

Layoffs at Mondelez

Unfortunately, there are difficulties on every snack-filled journey. Even established businesses like the world leader in snacking, Mondelez, have resisted the trend of layoffs. Mondelez had to make some difficult choices in 2023, including releases. We’ll occasionally take a bite out of reality, even though the news may not be sugar-coated. It’s critical to remember that, despite challenges, Mondelez’s foremost priority is long-term success.

As part of their strategic plan, the company made large employee reductions public in 2023. The decision sent shockwaves through the sector. It highlights the regrettable fact that layoffs are becoming a more common occurrence.

Mondelez to close Enjoy Life Foods factory in the US

Mondelez International runs a downstate Indiana factory. It makes goods for the Enjoy Life allergen-free brand. Now it is announced to be closing. The snack manufacturer relocated workers there after completing a plant in the Chicago suburb of Schiller Park in 2016.

The factory runs three production lines:

  • A line for snack bars can generate 780,000ft of bars each month.
  • A line for cookies can produce 7.1 million cookies each month.
  • A chocolate line can produce 1,500 tons of baking chocolate each year.

The snack firm decided that its present plant in Schiller Park, Illinois, was reaching capacity. It paid $39 million to open the 200,000-square-foot facility in 2016. Enjoy Life, situated in Illinois, was purchased by Mondelez in 2015 for an unknown sum.

The move of Enjoy Life’s sole factory would enable the business to develop to satisfy the rising demand for its products. Yet it also led to the loss of 125 to 150 jobs in the Chicago region.

Similarly, 166 jobs are projected to be lost due to the closing of the present facility in Jeffersonville, Indiana, which is located just over the Ohio River from Louisville, Kentucky. An Indiana WARN report states that the layoffs will occur in four stages. It begins in July and ends before April 1, 2024. Then, the plant’s activities will cease. The workers have no “bumping” rights and aren’t bound by a union.

According to a statement made to Just Food by Enjoy Life, the business will “transition activities to external manufacturing.” It seeks to “narrow and refocus” its product line. This is done in response to a “significant increase” in free-from-snack choices from other businesses.

Neither the reason for the plant’s closure nor the location of Enjoy Life’s product manufacturing was mentioned by Mondelez in the WARN filing. When asked for a comment, a representative waited to answer.

Enjoy Life Foods makes snacks for the so-called “free-from” market. Its products are, therefore, devoid of gluten and suitable for people with allergies.

Mondelez reported an 18.1% increase in first-quarter net revenue to $9.17 billion in April 2023. Pricing was responsible for 16.2% of growth. “Volume/mix” increased by 3.2 points.

By the end of 2023, Mondelez intends to separate its Russian operations

On June 20, 2023, Mondelez International announced that it had reduced operations in Russia. It wants to turn it into a stand-alone company with a self-sufficient supply chain by the end of the year.

Due to its operations, the Chicago-based snack manufacturer has been subject to a growing corporate boycott in the Nordic region. It said that it has stopped making new capital investments, launching new products, and paying for advertising outlets in Russia.

The company stated that “due to these steps, total volumes have fallen by double digits. Also, both our import volumes and market share have drastically reduced.”

Conclusion

Mondelez is embracing the snack revolution in a perpetual change and growth era. They’re on an adventure to surprise and excite snack lovers everywhere by watching the latest eating trends. Mondelez is prepared to lead the revolution in snacking. It offers exotic flavors that take you to far-off locations and plant-based solutions for the health-conscious.

The sizable workforce at Mondelez International allows them to create novel sweets, satisfy desires, and make snack time enjoyable. Each employee contributes to developing and delivering the snacks we all know and love. They range from great minds in research and development to dedicated employees on the manufacturing lines.

To sum up, Mondelez International has an outstanding team of more than 80,000 people who work for various great brands. They continue to excite snack lovers worldwide with their passion, ability, and dedication. Everyone, continue crunching!

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