May 20--Mondelez International CEO Irene Rosenfeld told shareholders Wednesday no decisions have been made on whether the snack-maker's Chicago bakery will gain $130 million in new investment, plans that also include hundreds of job cuts.
During prepared remarks at the company's annual meeting, Rosenfeld said Mondelez is focusing on reducing costs, improving productivity and investing for growth. The Deerfield-based manufacturer announced last week that the company is weighing whether to add four high-speed, state-of-the-art manufacturing lines in Chicago or at a new facility in Salinas, Mexico.
Either way, Mondelez plans to shut down older lines at its Chicago bakery. If it adds new capacity to the plant, at 7300 S. Kedzie, Mondelez would cut about 300 jobs in Chicago. If it adds capacity in Mexico, Chicago stands to lose 600 jobs.
The Chicago bakery currently employs more than 1,200 workers. Many of them are represented by unions, which met with Mondelez on Friday to discuss the plans.
In response to a shareholder question, Rosenfeld said the opportunity to improve margins is probably greatest in North America, compared with other markets around the world. The Chicago bakery, which opened as a Nabisco plant in the 1950s, will continue to be an important part of its manufacturing network, she said, regardless of whether it wins the new investment.
Along with Oreo and Chips Ahoy! cookies, the bakery makes Ritz and Premium crackers.
Another shareholder pressed Rosenfeld on the bakery's operation, asking how product supply would be affected by the upcoming changes. Rosenfeld told her that supply actually would be enhanced because of the new lines.
The shareholder, Noa Polish, noted after the meeting that she's owned Mondelez shares since her 9th birthday, when she asked for, and received, a stake in the company. Now 11, she said her favorite Mondelez product is the Oreo.
She said she learned about the job cuts at the plant from her mother. While she wants officials to do what's best for the company, she said she hopes they consider employees who will be losing jobs.
"I trust that what they're doing is right," she said.
jwohl@tribpub.com
