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Saturday, 04 July 2015

Barrow washing powder factory owner to cut 400 jobs

UP to 400 jobs will be cut by a manufacturer which employs around 230 people in Barrow.

McBride, which has a factory in Park Road, Barrow, has today announced plans to cut a quarter of its UK workforce of 1,600 as part of a bid to make savings of £12m in the next two years. 

The job losses will be across McBride's four UK sites in Barrow, Manchester, Hull and Bradford. The announcement was made at 7am through a trading report released by McBride as part of its London Stock Exchange obligations. 

As previously announced, and in response to a deterioration in the retail environment in UK, the board is conducting a wide-ranging strategic review of its UK business.

The board has today said savings of around £12m are expected to be delivered in full by June 2016. Associated cash implementation costs are expected to be around £14m.  It is expected that, of a workforce of 1,600 in the UK business, around 400 positions are expected to be made redundant. Consultation with affected employee groups will start immediately.

The group intends to announce its preliminary results for the year ended 30th June 2014 on 10th September 2014.

Chris Bull, group chief executive, said: "We are announcing a robust plan that will help restore our UK profitability. We will exit some business in non-core un-profitable categories, but our capacity to meet growth opportunities in our core categories remains unaffected. We will be entering into full and meaningful consultation with colleagues affected by these proposals".

The announcement was made as part of McBride's trading update, which also revealed:

  • Group full year revenue on a constant currency basis is expected to show a decline of three per cent as previously announced.
  • Private Label revenue was flat with continued growth in our France/Benelux, Poland and Germany businesses, the latter driven by significant new business wins, offset by the effects of the weak retail environment in the UK and Italy and continued increased branded promotional activity.
  • Contract revenue declined by 20% as expected due to the winding down of certain contracts.
Have your say

there arn't many jobs around anywhere,get your head out from under that stone.

Posted by Ben Bolton on 2 July 2014 at 18:50

This is what happens when accountants take over the reins of factories. Over the last few years the local management team have been wiped out at the plant and replaced by "hit squads" from McBrides Malaysian business who haven't got a clue. The death knell has sounded for detergent manufacture in Barrow, much as it did years ago for the huge detergent plant at Whitehaven which is now a greenfield site.

Posted by Soap Boy on 1 July 2014 at 20:42

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