Confectionery and drinks group Cadbury Schweppes yesterday revealed plans to cut 15% of its global workforce and factories by 2011.

The firm said 7500 jobs would go as part of a cost reduction plan that would also see about 15% of its manufacturing sites close.

The proposals, which could affect 10 factories, come on the heels of Cadbury's Fuel For Growth programme, which resulted in 30 factories being closed worldwide over the past four years.

It is expected to sell the US Schweppes drinks unit that makes 7-Up, Dr Pepper and Snapple as it focuses on its confectionery brands such as Dairy Milk and Trident gum.

Its main chocolate-making factory based in Bournville, Birmingham, is unlikely to bear the brunt after receiving millions of pounds of investment in recent years, although full details of where the axe will fall have not been disclosed.

The company employs around 52,000 people in confectionery worldwide, including about 6000 staff in the UK.

It has a cocoa processing plant in north Wales, a milk processing plant in Herefordshire, two chocolate manufacturing sites at Bournville, and Keynsham near Bristol, a sugar manufacturing plant at Sheffield, a medicinal confectionery business in Crediton, Devon, plus its head office in London and commercial offices in Maple Cross in Hertfordshire.

The reorganisation will cost Cadbury about £450m in a one-off charge.

However, analysts believe the sale of the drinks business would be expected to yield £7bn to £8bn and the company predicted its profit margins should increase from 10.1% to the mid-teens by 2011.

Private equity groups and the Canadian bottler Cott, which makes private-label soft drinks for retailers like Wal-Mart Stores, are thought to be among the possible bidders for the drinks business.

The T&G section of the union Unite, which has more than 2000 members across Cadbury in the UK, said the potential job cuts were a "grave concern".

There are also concerns that workers are being asked to find further efficiencies.

Brian Revell, national secretary for food and agriculture at the T&G section of Unite, said: "We have worked hard with Cadbury in recent years and co-operated in a change programme which means the UK factories are extremely efficient.

"We are, therefore, concerned by the announcement which we are convinced is driven by the threat of a takeover by private equity.

"Cadbury's is an iconic British brand which is a good and successful company that is clearly profitable."

The firm has been under pressure after poor European sales and a costly salmonella scare in the UK - which led to a million chocolate bars being recalled - saw profits fall sharply last year. Operating margins fell from 10.8% in 2005 to 10.1% in 2006.

Chief executive Todd Stitzer said: "Over the past three years, we have made great strides in improving our business performance.

"The plans announced today represent the next step in transforming our confectionery company from being the biggest global confectionery company to being the biggest and the best," Stitzer added.