McVitie’s owner Pladis has kicked off a restructure of its Manchester factory which could see a third of the workforce laid off.
The biscuit giant has kicked off a consultation with worker representatives over restructure plans designed to “address growing headwinds such as rising inflation, increasing energy costs and supply chain disruption pushing up production costs, at a time when the business faces a change in consumer demand”.
Pladis said the move could potentially result in the loss of 159 roles out of 470 at the facility.
The factory remained “a critical part of Pladis’ operations in the UK, producing well-known branded products”, it stressed. However its operating model was “no longer sustainable and must be addressed as part of the proposed changes”.
Pladis’ UK & Ireland supply chain VP Nina Sparks said the business understood the news would be “very difficult for those in Manchester” and its priority was “to provide our colleagues with complete guidance and the right support as we start the proposed consultation process”.
She said Pladis believed strongly in the “enduring consumer appeal” of its brands but “like many other businesses, we are grappling with new and growing external pressures”.
Indeed, it comes as McVitie’s lost £41.1m in retail sales last year, dropping 8.2% to £462.8m on volumes down 10.5%. Its Jacob’s brand, meanwhile, was down 11% to £180.5m – a £22.2m loss [NielsenIQ 52 w/e 1 January 2022].
The business has unveiled a raft of new products over recent months to keep shoppers interested. Notably, it resurrected BN biscuits, and took McVitie’s into bagged treats with a new brand called Blissfuls.
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