How many net jobs were lost in Scotland as a result of changes by Diageo?
LONDON (Dow Jones)–Global drinks giant Diageo PLC (DEO) Wednesday extended its global cost-cutting program, identifying further savings in its Scottish business, where it plans to close a number of plants and cut 11% of its workforce. The maker of Johnnie Walker scotch, Guinness stout and Smirnoff vodka said that the closure of a packaging plant, a distillery and a cooperage in Scotland would save GBP40 million a year from 2012. The cost of maturing its whisky stocks will also be cut by GBP10 million a year, though this won’t be realized until the stock is sold in future years. The plans will result in the loss of 900 of Diageo’s 4,500 Scottish workforce, though a further 400 new jobs will be created with the expansion of a packaging plant. Diageo said there would be no compulsory redundancies for at least 12 months. Sources: http://online.wsj.com/article/BT-CO-20090701-703707.
Around 900 jobs are being axed by drinks group Diageo in Scotland as part of an overhaul which will see the closure of its historic distillery at Port Dundas. Diageo is shutting the distillery, which has been producing whisky since 1810, and is also closing a packaging plant at Kilmarnock in Ayrshire and outsourcing some of its warehousing operations. The jobs will go over the next two years, but Diageo said changes in the region will also see 400 jobs created through the expansion of its packaging plant in Fife. Diageo – the group behind brands including Guinness, Smirnoff vodka and Johnnie Walker whisky – is also restructuring its brewing operation in Ireland to cut costs, but is yet to reveal the impact on jobs or its three Irish breweries. The group’s restructuring in Scotland will mark the end of nearly 200 years of distilling at the Port Dundas operation in Glasgow. Around 140 jobs will be lost when the distillery and its adjacent Dundashill Cooperage close, although Diageo is ho
The posts will go under a restructuring that will see the closure of its Port Dundas distillery in Glasgow and a packaging plant in Kilmarnock. The firm said the closures would take place over the next two years and will make the business “more sustainable”. Diageo said the job losses would be offset by the creation of about 400 new posts through the expansion of a packaging plant at Leven in Fife. The firm said about 700 jobs would go over the next two years with the closure of the Kilmarnock packaging plant in East Ayrshire. Diageo said the plant faced “infrastructure limitations” which were not issues at its other packaging plants at Shieldhall in Glasgow and Leven in Fife. Sources: http://news.bbc.co.uk/2/hi/uk_news/scotland/8128099.
