Mondelez hires Accenture to help it slash costs


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.

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Comments (5)
  • 50 cent it is
    , contributor
    Comments (1453) | Send Message
     
    This is wonderful news
    I wish all of the companies I own would do the same
    19 Feb 2014, 07:15 AM Reply Like
  • Sittingcrow
    , contributor
    Comments (107) | Send Message
     
    Q. "What do you call a 50% reduction in staff -RIF- top to bottom- at the Mondelez Chicago corporate headquarters?"

     

    A. "A good start".
    19 Feb 2014, 09:38 AM Reply Like
  • wayneq
    , contributor
    Comments (44) | Send Message
     
    Yes the first staff reduction should be Irene Rosenfeld! She did such a poor job at Kraft, I was glad to see her leave/move to MDLZ but she should have been given the boot!
    19 Feb 2014, 12:39 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1453) | Send Message
     
    At least she has initiated a serious cost cutting program
    I give her credit for that
    20 Feb 2014, 08:12 AM Reply Like
  • Keags20
    , contributor
    Comments (4) | Send Message
     
    Long term all this cost cutting hurts the customer, consumer, and the employees. MDLZ needs more innovation (A Blue Ocean Strategy). James Kraft built a huge company through innovation. They need to stop letting go all their great talent. its penny wise and pound foolish. What a shame.
    5 May 2014, 03:41 PM Reply Like
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