Seeking Alpha

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.
Comments (5)
  • 50 cent it is
    , contributor
    Comments (1270) | Send Message
     
    This is wonderful news
    I wish all of the companies I own would do the same
    19 Feb, 07:15 AM Reply Like
  • Sittingcrow
    , contributor
    Comments (93) | 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, 09:38 AM Reply Like
  • wayneq
    , contributor
    Comments (31) | 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, 12:39 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1270) | Send Message
     
    At least she has initiated a serious cost cutting program
    I give her credit for that
    20 Feb, 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, 03:41 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|