Mondelez hires Accenture to help it slash costs

|By:, SA News Editor

Taking inspiration from 3G Capital's slashing of costs at Heinz, Mondelez (MDLZ) has hired Accenture (ACN) to do similar work at the owner of Cadbury's chocolate.

Mondelez is looking to make $3B in gross productivity savings over three years.

"We've watched the work that 3G has done with AB InBev and Heinz," says Mondelez CEO Irene Rosenfeld, "and we believe they can be of great help to us."

3G uses "zero-based budgeting" whereby managers have to build budgets from scratch each year rather than basing them on the previous one. It means that executives have to re-justify expenses every year.

Following the acquisition of Heinz by 3G and Berkshire Hathaway, the food group has cut 2,000 jobs and closed three plants.