The company has announced it will close its chocolate factory at Keynsham, near Bristol, between 2009 and 2010, forcing all 500 employees out of a job.
A further 200 job cuts will also take place between 2008 and 2010 when some production will move from Cadbury's Bournville site in Birmingham to its sister factory in Poland. Cadbury said the cuts were aimed at "creating greater supply chain efficiencies".
Its two UK chocolate manufacturing sites at Chirk in North Wales and Leominster, Herefordshire, will be "unaffected" by the changes, the company added.
Managing director Trevor Bond said: "While the proposed closure of our Keynsham factory will be difficult for those affected, our ongoing commitment to manufacturing in the UK is absolute." Bond added that Cadbury's £40 million investment in the Bournville factory is testament to that commitment.
MP Dan Norris has pledged to fight the closure of the Keynsham plant and has launched a consultation giving residents the chance to have their say on a future without Cadbury, according to press reports.
Last week staff from the Bournville factory joined co-workers at Keynsham in a protest against the planned closures.