Chief executive Todd Stitzer said Cadbury would save £400m by 2007 by shelving between 10% and 20% of its 133 factories and 55,000 employees worldwide.
Stitzer said the move would cost £900m and “provide the funds to increase our investment in marketing and innovation to drive our top-line growth”.
As a result of the cutbacks, net sales should increase by between 3% and 5% every year, Stitzer added.
Earlier this month, Cadbury said it intended to close two British factories by March 2005, resulting in 555 job losses - the former Adams plant in Greater Manchester and the Trebor plant in Chesterfield.
At the beginning of the year Cadbury also announced a further 400 redundancies in Denmark, America and Australia.