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July 12, 2019

Jobs at risk as UK baker Warburtons plans facility closure

UK bread maker Warburtons is planning to shut a bakery in the north of England with more than 100 jobs affected by the decision.

By Leonie Barrie

UK bread maker Warburtons is planning to shut a bakery in Newcastle in the north east of England with 118 jobs affected by the decision.

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The firm, headquartered in Bolton in England’s north west, blamed the “challenging” bakery market for the move.

Warburtons, a family-run business, is planning to shut its core bakery at the Newburn site which has been operational since 1989. Its depot and free-from bakery in the same area are unaffected by the proposals.

The baker has started consultations with staff at the core bakery and said it will do everything possible to redeploy employees affected by the decision within the business.

In a statement sent to just-food, Warburtons said: “The bakery market continues to be challenging, and as consumers continue to switch from bread to other wrapped bakery such as bagels, flatbread and crumpets, we need to ensure our business is set up to meet demand for the long term.

“Unfortunately, this means making the very difficult decision to enter into consultation on the proposed closure of our core Newburn bakery. No decision will be made until the thorough consultation is completed and we are supporting everyone affected at this very difficult time.

“We continue to invest in our business and in the last 18 months we have invested over GBP35m (US$43.9m) in our infrastructure alone to enable us to innovate and meet changing consumer demand. We also remain committed to our North East operations, and over the next 12 months will be making improvements to our free-from bakery and distribution facility at an investment of GBP3m.”

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Free Whitepaper
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What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

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