UK spreads maker Dairy Crest is to cut around 20% of its workforce at its Kirkby plant on Merseyside.
The company is in the process of consolidating butter and spread production into its Kirkby site, which employs around 150 staff.
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However, Dairy Crest said recent trading conditions in the sector had hit volumes.
“Over recent months the butters and spreads market has been particularly difficult and we now anticipate that consolidated production volumes at Kirkby will be lower than we initially thought.”
The company said it has started to “negotiate and consult” with employees and representatives on changes to the employee structure at Kirkby.
“This may involve a simplification of the existing complex employee agreements and some job losses. Should they arise we aim to keep these job losses to a minimum, and we will support any employees whose jobs do become redundant,” it said.
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By GlobalDataThe Kirkby plant is set to become Dairy Crest’s main production site for butter and spreads when a facility in Shropshire is closed next year.
Earlier this month, the company reported a drop in first-half sales and operating profit. The group’s spreads business has continued to struggle and the performance of the unit weakened year-on-year, with sales down 12% and profit down 39%.
