Saputo to Cut Jobs and Shift Focus at UK Factory
Source: dairynews.today
Saputo plans to cut 60 jobs at its Davidstow Creamery in the UK as it halts production for infant-formula ingredients, focusing instead on sweet whey powder.
Dairy giant Saputo has announced plans to make approximately 60 redundancies at its Davidstow Creamery, located in the south-west of England.
This decision comes as the company discontinues the production of ingredients for infant-formula products, such as demineralised whey (D90) and galacto-oligosaccharides (GOS), citing "demographic shifts and changes in demand for different whey formats."
Instead, Saputo will focus on manufacturing sweet whey powder at the facility. In total, 80 job cuts are proposed across its UK operations, with an additional 20 positions expected to be lost at other locations.
The company has indicated that these changes are necessary to simplify its business and improve efficiencies amidst challenging market conditions. Saputo's UK arm clarified that this move will not affect its cheese production, including at the Davidstow site where cheddar cheese is produced. The firm also assured that the proposal will have no impact on its farmer suppliers.
The proposed changes are expected to be implemented by the end of September 2025. Saputo has stated that it will enter a consultation period to support affected employees. This announcement follows recent financial challenges for Saputo's UK operations. In February, the company reported a steep rise in losses, posting a C$518m ($362.6m) loss in third-quarter, largely due to a C$674m non-cash goodwill impairment charge linked to its UK arm.
Saputo has been consolidating its operations globally, closing several plants in the US, UK, and Australia in recent years. In previous announcements, Saputo detailed plans to close a facility in Kirkby Malzeard, North Yorkshire, and has outlined further plant closures in the US and Australia.
This decision comes as the company discontinues the production of ingredients for infant-formula products, such as demineralised whey (D90) and galacto-oligosaccharides (GOS), citing "demographic shifts and changes in demand for different whey formats."
Instead, Saputo will focus on manufacturing sweet whey powder at the facility. In total, 80 job cuts are proposed across its UK operations, with an additional 20 positions expected to be lost at other locations.
The company has indicated that these changes are necessary to simplify its business and improve efficiencies amidst challenging market conditions. Saputo's UK arm clarified that this move will not affect its cheese production, including at the Davidstow site where cheddar cheese is produced. The firm also assured that the proposal will have no impact on its farmer suppliers.
The proposed changes are expected to be implemented by the end of September 2025. Saputo has stated that it will enter a consultation period to support affected employees. This announcement follows recent financial challenges for Saputo's UK operations. In February, the company reported a steep rise in losses, posting a C$518m ($362.6m) loss in third-quarter, largely due to a C$674m non-cash goodwill impairment charge linked to its UK arm.
Saputo has been consolidating its operations globally, closing several plants in the US, UK, and Australia in recent years. In previous announcements, Saputo detailed plans to close a facility in Kirkby Malzeard, North Yorkshire, and has outlined further plant closures in the US and Australia.
Key News of the Week
