Young’s to axe 555 jobs at Cumbrian Seafoods
Morris told FoodManufacture.co.uk: “Less than a year ago, Cumbrian employed 500 people and had expansion plans to increase that number to 700.
“The company had just invested £25M and has one of the most modern supply chains.
So, news of these job losses is bitterly disappointing.”
Young's acquired Cumbrian and its subsidiary Border Laird last month after the firm declared bankruptcy. Following a review of operations at the former Cumbrian Seafoods sites, Young's proposes to cut 363 jobs in Seaham, 112 jobs in Whitehaven and 80 jobs at the Border Laird site in Amble.
Pete Ward, Young’s chief operating officer, said: "We want to ensure that we deliver quality products for our customers in the most effective and efficient way.
Whole workforce
“This move does not reflect on the committed and skilled teams in Seaham, Whitehaven and Amble, who are continuing to work hard through this time, which is a huge credit to the whole workforce.
“However, it is clear from the fact that the business went into administration that the current business model is not viable. We continue to be focussed on fulfilling customer contracts and talking, in detail, with the employees about options for the future."
Morris said he had sought an urgent meeting with Young’s chief financial officer Pete Ward but had not seemed “awfully keen” to meet either in the north east of England or London.
Rising costs
Meanwhile, in December Cumbrian administrator PricewaterhouseCoopers identified rising raw material costs and reductions in business activity as having played a key role in the firm’s decision to go into administration.
Speaking last month, Leendert den Hollander, chief executive of Young’s Seafood, said: “This [acquisition] is the beginning of a process and the teams involved will work hard to understand the business and consider in detail how best to take the customer contracts forward. Our focus is on customers - on fulfilling their contracts - and consulting with new employees on possible options for the future.”
Young’s employs about 3,200 people across 13 UK sites.
The former Cumbrian Seafoods’ Seaham site produces a wide range of fish and seafood, including white fish and prawns.
The Whitehaven former Cumbrian Seafoods site is a primary processor and smoker of fish.
The former Cumbrian Seafoods’ Border Laird site is a primary processor of langoustines and has fishcake-making facilities.
