More jobs are to go at UK food maker Premier Foods plc after the country’s largest food manufacturer lost one of its contracts to supply Cadbury.
Premier confirmed today (25 January) that a “small number” of employees at its site in Knighton in Staffordshire would be made redundant in the wake of a decision by Cadbury owner Kraft Foods to bring more of its production in-house.
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It meant that Premier’s contract to make hot beverages for Cadbury has come to an end.
A Premier spokesperson refused to be drawn on the number of staff that could be affected and said the company had begun consulting with employees and union representatives. Local reports had claimed up to 50 jobs could be lost.
“We’re not confirming the numbers because that would be unfair to do that right now,” the spokesperson said. “Now, it’s more about that consultation process.”
The job losses at Knighton are not included in the 600 jobs Premier said last week it plans to cut across its business.
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By GlobalDataThose cuts are part of Premier’s moves to strengthen its balance sheet as it looks to refinance its high level of debt.
The strategy to improve Premier’s financial position has seen the company offload assets in the last year and the company said the cuts were needed to “reflect the smaller size of the business”.
Talks over a plan to refinance its debts continue and Premier expects to reach a deal soon.
