Nestlé

645 jobs
Number of planned job losses

Announcement Date

20 June 2006

Employment effect (start)

Foreseen end date

Description

Chocolate and confectionary manufacturer Nestle has announced major restructuring plans that will involve the loss of 645 jobs at the firm's York plant. The Swiss firm said part of its site in the city would be sold and some products moved to other factories in the UK and in Europe. Under the terms of the company's plans Black Magic will be made in the Czech Republic, Smarties in Germany and Dairy Box in Spain. Nestle said it hoped at least half of the job losses, which will start next year, could be achieved through voluntary redundancy or early retirement. The firm said it would continue to employ more than 1,800 people in York. The announcement follows an earlier cut of 234 Nestle jobs and takes York's job losses to more than 1,600 in a year. Chief Executive of Nestle UK, Alastair Sykes, argued that the UK confectionery market is very competitive. 'Our Nestle Rowntree business has market-leading brands and strong potential, and this restructure and investment programme will ensure that it is competitive and fit for the future.' But the move has angered Unions. GMB union organiser John Kirk said the firm had failed to invest in its York site. He said: 'Nestle's reasons for exporting so many jobs - namely that the plant and buildings are old and out of date - are self-serving.' City of York Council said it was 'saddened' by the announcement. Bill Woolley, director of city strategy for the authority, said the council's first priority was to support those made redundant. He added: 'Despite recent announcements, York's economy remains buoyant and we will continue to work with partners across the city to attract new jobs to the area through initiatives such as Science City York.'

Sources

• 20 September 2006: BBC News