Mondelez to axe 600 jobs in Chicago and invest $130m in Mexico

US-based confectionery company Mondelez International will cut 600 jobs at its Chicago plant and invest over $130m in new production lines at its plant in Mexico.

However, despite the job cuts, which are expected to be carried out over the coming year, the Chicago plant will continue to be one of the company’s biggest locations in terms of employment in North America.

Mondelez integrated supply chain executive vice-president Daniel Myers said: "This new investment is part of our ongoing supply chain reinvention plan, as we implement several initiatives around the world to transform our global manufacturing processes to accelerate growth, reduce costs and improve productivity.

"These investments will enable a significant percentage of our global Power Brands to be produced on advantaged assets, and are key contributors to our overall margin improvement."

The Mexico investment will fund the installation of four state-of-the-art manufacturing lines, known as ‘Lines of the Future’, and will replace nine manufacturing lines at the Chicago biscuit plant. The replacement is expected to be completed by mid-2016.

Mondelez has already invested around $170m in manufacturing lines at its biscuit plants in New Jersey, Illinois and Virginia.

Mondelez North America integrated supply chain, biscuits vice-president Olivier Bouret said: "The Chicago plant has been and will continue to be an important part of the company’s North American biscuit footprint, producing a variety of beloved consumer products.

"While the new investment will affect approximately 600 positions in Chicago, we’re committed to treating all impacted employees fairly through this difficult time."

Mondelez produces biscuits, chocolate, gum, confectionary, and powdered beverages.