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ABC News
ABC News
National

Cadbury to shed 40 workers as new machinery introduced

Cadbury has shed a total of 170 workers since 2015.

Chocolate-maker Cadbury has announced 40 jobs will go from its Hobart factory over the next four months.

Parent company Mondelez said it was spending $20 million on new machinery to wrap Flake and Twirl bars, meaning the workers who did the job manually will no longer be needed.

Staff were told the news on Thursday evening.

Claremont-based factory site manager Ross Coleman said efficiencies had to be made for those products to remain price-competitive.

"Certain product lines such as Flake and Twirl require significant efficiencies to ensure we can compete globally and overcome some of the challenges associated with Australian production, such as our distant location, low domestic growth, and rising costs of freight and other inputs," he said.

The 40 jobs represent 10 per cent of the current workforce and will raise the total number of cuts to 170 since 2015.

Cadbury shed 80 jobs in 2015 after a drop in sales in a more internationally competitive market and another 50 in 2017 as part of a $75 million upgrade.

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