Nestlé will axe nearly 600 staff and shut Newcastle factory that makes Fruit Pastilles – with plan to shift production of products to EU plants
- The company’s site in Fawdon will close at the end of 2023, costing 475 jobs
- Changing working practices at its site in York will see a further 98 losses
- The GMB union branded the confectionery giant ‘greedy’ as details emerged
Nestlé is planning to axe nearly 600 staff and shut its Newcastle factory that makes Fruit Pastilles – and shift production of its sweets to EU plants instead.
The Swiss-owned firm is proposing the closure of its site in Fawdon towards the end of 2023, with the loss of around 475 jobs, with a further 98 job cuts in York.
The company said it was proposing changes to adapt its confectionery manufacturing for the future, with a £29.4 million investment at its factories in York and Halifax.
People leave the Nestle factory at Fawdon, near Newcastle, after the company announced that it is planning to cut almost 600 jobs in the UK
The company said: ‘Nestle Confectionery has an ambitious business strategy in the UK and these proposals are intended to support our long-term success in an increasingly competitive category.
‘The proposed changes would create a more efficient manufacturing footprint and, in turn, allow greater strategic investment in Nestle’s biggest confectionery brands.
‘We have chosen to announce these proposals as early as possible to provide the maximum time for consultation with our colleagues and trade unions.’
The GMB union said it was ‘sickening’ that lives were being ‘ruined in a ruthless pursuit of profits’.
The factory at Fawdon, which first opened in 1958, makes products including Fruit Pastilles, while the York site manufactures Kit Kats.
Nestle, which employs 8,000 workers in the UK, is proposing to move production of products from Fawdon to other factories in the UK and Europe.
The news coincides with the European Parliament today approving a post-Brexit trade deal, however a Nestle spokesman insisted the two announcements were ‘not at all related’.
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