Dairy Crest is losing two directors as part of a reorganisation of its business that will generate cost savings of around £5m.

The company plans to consolidate into a single structure with an integrated supply chain.

As part of the restructure, finance director Alastair Murray is leaving to “pursue other business interests”. He has been FD for 10 years and will be replaced by director of financial control Tom Atherton on 23 May. Analysts described Murray as “longstanding, and well-regarded”.

Dairies MD Toby Brinsmead will also step down from the management board next month and leave the business in May. He has worked at Dairy Crest since 1998 in roles including FD and MD of retail milk.

Dairy Crest has also promoted Mike Barrington to group supply chain director to head the new unified supply chain, and Robert Willock to HR director. They will both join the management board on 1 April. Corporate affairs director Arthur Reeves and director of corporate development Roger Robotham will both step down from the board on this date, but remain in the business. Further job losses are also expected at head office.

“Alastair has been a finance director of the highest quality with an excellent reputation,” said chairman Anthony Fry. “I also want to thank Toby for his important work in creating a unified Dairies business.”

News of the rejig, as well as an extension to Dairy Crest’s milk supply contract with Sainsbury’s, was welcomed by the City, sending shares rising. “We reiterate our hold recommendation on Dairy Crest stock, believing the potential for a material recovery in medium-term dairy profitability and the realisation of benefits from the ongoing restructuring are fairly reflected in the stock price,” said Shore Capital analyst Darren Shirley.

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