C&C, the troubled Irish Magners manufacturer, is to appoint its first UK managing director to "spearhead growth".

The new role has been created as part of a major management shake-up at the company, which is axing 150 jobs as part of a cost-cutting programme. The company said it wanted to make a net annual saving of €10m after posting a 33% drop in operating profit, a slump in UK sales of Magners and a collapse in share price on the back of three profit warnings issued this year.

The company was already recruiting for a new UK MD, who would "spearhead the growth and development of Magners in Britain", C&C's largest cider market, it said. There were also plans to increase investment in sales and marketing in the UK.

Brendan McGuinness, MD of the group's cider division, who is retiring next May, would not be replaced in the shake-up, said C&C, adding that his functions would be added to the existing workload of chief executive Maurice Pratt.

To streamline management functions, 10 of the 150 job losses would come from head office. Meanwhile, manufacturing, logistics, purchasing and technical have been brought together under a new position, that of managing director - supply chain, which will be filled by logistics director Aidan Murphy.

The restructure reflected a "sharper focus on cider, spirits and liqueurs" following the sale of C&C's soft drinks and snacks business, said Pratt.

"When this programme is implemented we will have a more efficient organisational structure and our cost base will be better-aligned with the group's business needs," he added.

The job losses represent about a fifth of C&C workforce and include 140 full-time staff at the company's manufacturing plant in Clonmel, County Tipperary, where 600 people are employed. Pratt said the cuts were "regrettable".

Union officials said they were shocked by the job losses and that they would be pressing for cuts to be voluntary and include a generous redundancy package. The unions representing the 150 workers were scheduled to meet C&C management yesterday (Friday) to negotiate redundancy agreements.

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