No more pies as Saxby's lays off 200 in major restructuring

Pie and chilled pastry manufacturer Saxby's is to axe two-thirds of its jobs and withdraw from the baked goods market after almost 100 years of savoury pie production. The company blamed long-term decline in the deli sector coupled with intense price pressure.

The family-owned firm, famous for its Melton Mowbray pork pies, will lay off around 200 of its 350 staff as it restructures its Wellingborough, North-ants, site to concentrate on pastry and unbaked products. No part of the business is to be sold.

Managing director Bill Saxby said: "The decision was made after months of deliberations during which every possible option was explored, including focusing on new product development and the introduction of new internal operating systems and procedures. Maintaining a presence in product areas such as deli cutting pies, pastries and baked filled pies would have jeopardised other profitable areas of our business on which we must now concentrate." He added: "Despite the sombre mood that prevails currently, there is a collective determination to succeed."

Saxby's claims to be the leading firm in the £25m pastry market and number one in the chiller cabinet. It has invested more than £10m at its Wellingborough site over the past 10 years, including a £500,000 development centre.

The £23m a year-turnover firm, which sells under Saxby's and the Irchester Grange premium catering brand, said the scale of the lay-offs had come as a shock to workers, although "a number of employees had anticipated that a restructuring would be implemented". It said it would be helping staff find alternative jobs.