Announcing plans to cut 900 jobs, including the closure of its distribution site in Plymouth, Premier Foods, the owner of Hovis said appropriate consultations with employees affected and their representatives will begin in the coming days.
The company has said the charges associated with the proposals are expected to be approximately £28 million but expects to recover that through site disposals, reduced working capital requirements and lower capital expenditure.
Commenting on the proposals, Michael Clarke, Chief Executive Officer of Premier Foods said:
– Michael Clarke, Chief Executive Officer of Premier Foods
Having generated solid growth momentum in our Grocery Division, it is critical that we act to assure the long-term future of the Bread Division. By simplifying our cost base, we can increase focus on improving efficiency, quality and service levels to help grow our core Hovis business. We recognise the impact these actions will have for our employees at the sites affected. Decisions will not be taken lightly but they are necessary if we are to build a strong and successful future for the Bread Division and those who remain with our business
The Owner of Hovis, Premier Foods has announced plans to close its distribution site in Plymouth. The closure is part of wider plans to cut 900 jobs to revive the struggling bread business and is expceted to take place sometime next year.
- The biggest impact will be felt in Birmingham, with 511 jobs lost
- Operations at Greenford in west London will end with 196 jobs lost
- Distribution sites at Plymouth and Mendlesham in Suffolk will also close with 95 jobs lost