- As part of continued cost-cutting initiatives, Mondelez International has announced plans to change up its North America marketing department, which could mean significant job cuts.
- The new changes will go into effect in early 2016 and will improve effectiveness and efficiency, Mondelez told Ad Age. The company announced a restructuring plan in May 2014 to reduce the company's annual operating costs by at least $1.5 billion by the end of 2018.
- In June, Mondelez began reviewing its global media buying and planning business with plans to consolidate that roster as well.
This is the second time this week Mondelez has been in headlines regarding cost-cutting initiatives. The profit margin-boosting measures have been a topic of discussion ever since activist investor Bill Ackman announced his $5.5 billion stake in the company earlier this month. At the time, he also strongly suggested that Mondelez significantly cut costs or sell itself to a competitor.
Another major investor, Nelson Peltz, took his seat on Mondelez's board last year, and soon after, Mondelez instituted a zero-based budgeting policy, which Peltz had admired from the success of 3G Capital's approach to H.J. Heinz Co.
Slimming down marketing could be another cost-cutting option for Mondelez.
"For 2014, the company reported worldwide ad costs of $1.6 billion, or about 4.5% of sales. Mondelez spent $278 million on advertising in the U.S. last year," Ad Age reported.