Mars warns of possible job cuts after merging chocolate division and Wrigley
The combination will help “deliver greater value to customers, and enable the segment to address consumer trends and insights holistically in what is increasingly seen as one global confectionery category,” according to the company’s release.
Acquiring Wrigley from Berkshire Hathaway
The possibility of merging the company’s two divisions was made after Mars’ early buyout of Berkshire Hathaway’s equity interest in Wrigley.
Warren Buffet-owned Berkshire Hathaway has held a minority stake in Wrigley after helping Mars acquire the business in 2008.
Mars’ CEO, Grant Reid, said in a statement that the company’s previous relationship with the home services firm “has yielded value on both sides”.
Possible impact on jobs
Even though Wrigley’s spokesperson, Denis Young, said earlier that the number of employees at its Chicago office shouldn’t change much due to the combination, Mars’ global director of media relations, Jonathan Mudd, later warned that “there will be some impact on jobs, but we don’t know the full implications at this time.”
“The proposed creation of Mars Wrigley Confectionery will create changes across both segments… Our organizational design work will be continuing over the coming months and will inform our new organization structure,” he added.
Mars Wrigley Confectionery will have approximately 30,000 associates operating in about 70 countries, and it will be phased in during 2017.
Martin Radvan, current global president of Wrigley, will lead the new segment, which will be headquartered in Chicago, Illinois.
