"A total of 120 out of 170 managers and executives have quit since Kraft took control of the 200-year-old company in February after a bitterly fought 11.5 billion pounds takeover battle," the Daily Mail reported.
Specialists from various departments like creative, design and marketing have left the company.
Kraft's reputation has been further dented by claims that it has proposed major changes in Cadbury's products, including using powdered Milka chocolate from Germany in some products and reducing the size of the popular Dairy Milk bar.
Among the products that could be affected are Buttons, Creme Eggs, Milk Tray and Crunchie bars, as per the report.
However, Cadbury has strongly denied that such changes are being discussed. "The idea we would replace Cadbury milk chocolate recipe with Milka recipe is obviously nonsense," the report quoted a Cadbury spokesman as saying.
A reduction in product size, however, is considered a distinct possibility, as it is a common way for confectioners to reduce costs.
According to the newspaper report, dozens of workers could lose their jobs as a result of the changes, particularly at Chirk, near Wrexham, and Marlbrook, in Herefordshire, where Cadbury's raw materials are currently processed.
While some resignations are normal after such a major deal, industry experts are shocked at the extent of the exodus.