The firm blamed the “general weakness in the economy” as an underlying reason behind the losses which it also said were “necessary for the long term viability of Silver Spring”.
Chief executive officer, Gary West told Food Manufacture.co.uk: “While significant progress has been made, it is critical that we continue to restructure the business and ensure it remains profitable and competitive for the long term. To reflect a rationalisation of some lower margin product lines and respond to general weakness in the economy, the board has taken the decision to review all our operating costs and as part of this process 39 job losses have been confirmed.”
Silver Spring’s financial position continues to improve with profit gains, the agreement of a 50-year agreement for water supply and the agreement of external funding, said West.
“We have focused on developing and investing in our successful lines including our brands, 1870 and Perfectly Clear, together with our contract packing business,” he added.
Silver Spring’s decision follows press reports in August that the firm was set to axe 35-40 jobs from its 130-strong workforce following poor sales as a result of the poor summer weather conditions.