ABF-owned Kingsmill maker Allied Bakeries confirms job cuts

ABF-owned Kingsmill maker Allied Bakeries confirms job cuts

Allied Bakeries, the UK bread business of Associated British Foods, has confirmed plans to cut management and administrative roles.

An Allied Bakeries spokesperson told just-food the company has made a proposal to reduce "a small number of management and administrative roles in central functions based in Maidenhead and Liverpool".

The spokesperson said: "If these proposals are implemented it is anticipated that 23 roles will be impacted in total. We believe this will make us more efficient as an organisation as we remove cost and share activities more effectively across fewer roles."

The spokesperson revealed the company has launched a consultation with employees about the proposals.

"We are currently consulting with our employees about the proposal. Every effort, including professional outplacement support, will be made to secure alternative employment either within Allied Bakeries, the broader ABF group or externally in their local area."

The Kingsmill maker has seen its margins hit by an aggressively competitive environment in the UK. Downward price pressure from retailers working to prove their value credentials on everyday items such as bread has been compounded by over-capacity in the market. In its most recent financial update for the first nine months of the year, ABF said it has been able to rebuild some of Allied Bakeries volumes but confirmed that margins remain under pressure.