Mondelez has loaded up on debt to boost (on paper) its return on equity while funding buybacks and dividends rather than reinvesting in its business and workforce. The high debt ratio leaves the company, and its workers, highly vulnerable to even the slightest change in interest rates, sales income etc.
To this end, in 2016, Mondelez announced plans to reduce capital investment, and with it investment in the workforce, by a significant percentage over the next three years. Mondelez has also promised to deliver additional supply-chain ‘productivity’ and other cost savings to ratchet up margins and deliver still more cash to eager shareholders.
It is more important than ever that Mondelez’s workforce stay united and organized in the face of a company looking to generate profit by cutting costs rather growing the business. The Mondelez Union Network was created to help Mondelez workers stay united and organized. Contact your IUF Affiliate to get more involved.