Diageo cuts 900 Scottish jobs
02 July 2009 09:28
Diageo, the maker of Johnnie Walker, Guinness and Smirnoff, is cutting 900 jobs as part of a restructuring of its Scottish operations.
The group will also close its historical Glaswegian distillery at Port Dundas and a packaging plant in Kilmarnock in an effort to make cost savings of around £40 million a year by 2012.
Diageo, the world's biggest spirit group, said that most of the job losses will arise from the consolidation of its three Scottish packaging facilities into one plant in Fife, which will create 400 new jobs. The company will also cut some jobs from its warehousing operations, which will be outsourced. The restructure is expected to cost about £120 million.
Bryan Donaghey, managing director of Diageo Scotland, said: "These decisions have been extremely difficult to take. We have only reached them after an exhaustive review of all the possible alternatives. I am sorry for the impact this announcement will have on our employees and their families in Kilmarnock and Glasgow and the difficulty this will cause in Kilmarnock where we are a major employer.
"We believe the plans announced today will help secure the sustainability of our business in Scotland. As Scotland's largest manufacturing exporter, 85% of our output from Scotland is exported to over 180 markets worldwide. We therefore need to be competitive in a global context and the restructuring announced today is a key part of this.
"Our plans and the associated £100 million investment reflect the strength of Diageo's continued commitment to Scotland. With these changes, Diageo would still employ nearly 4,000 people across the country.
"We will do everything we can to support our employees through this difficult time. We will also work closely with local political and community leaders in Kilmarnock so that together we can seek to address the impact this announcement will have on the town".
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