Nestle Axes Quarter of Workforce at British chocolate Factory

Posted 21 September 2006 @ 09:42 pm EET     Print     Reprint     E-Mail     Comments

LONDON (AP) - Swiss food group Nestle has said it would slash 645 jobs at a chocolate factory in the northern English city of York. The cuts, which amount to 26 percent of the workforce at the site, will start next year and continue until 2008, Nestle said in a company statement Wednesday. The facility will continue to employ 1,800 staff.

The job cuts meanwhile represent 7.0 percent of Nestle's workforce totalling 9,000 in Britain and Ireland, a spokeswoman said. Alastair Sykes, chief executive of Nestle UK, said that the restructuring programme would ensure that the business was "competitive and fit for the future". The York factory, which dates back to 1890, manufactures chocolate brands including KitKat, Yorkie, Milky Bar and Smarties.

Nestle said it would move production of some products to other sites in Britain and Europe. Union officials expressed anger at the announcement. "This announcement will be devastating to the people of York and to the long-serving GMB members who work in the factory," GMB union organiser John Kirk said.