Diageo to cut 80 jobs in Scotland

By Lorraine Mullaney

- Last updated on GMT

Related tags: Diageo, Scotch whisky, Whisky, Scotland

Diageo is reviewing it Scottish operations
Diageo is reviewing it Scottish operations
Diageo is planning to “take 80 roles out of the business” as it restructures its management operations in in Scotland.

The company said that a global supply and procurement review of its Scottish manufacturing operations had identified opportunities to “build further competitiveness”​.

In a statement issued to FoodManufacture.co.uk, the company said: “To ensure the business in Scotland remains competitive the review identified opportunities to simplify processes and organisation at local levels, which will result in a proposed reduction of around 80 roles across Diageo’s 50 sites in Scotland.”

Under a new global management structure Scotland will form part of a newly created International Supply Centre (ISC), which will bring together management of Diageo’s beer, wine and spirits production operations in Europe under a single management structure. The ISC will replace the current Diageo Europe Supply organisation and will continue to be headquartered in Edinburgh. It will build on the existing Scottish operational strength in manufactured exports.

‘We saw this coming’

The reduction will primarily be in management roles and will be spread across a number of sites.

A spokesman for the union Unite in Scotland told FoodManufacture.co.uk: “Diageo has cut nearly 1,000 jobs in Scotland over last few years so, regrettably, it comes as no surprise that there is now further uncertainty in Leven. The grim reality is that jobs and communities in Scotland are insignificant to Diageo in their relentless pursuit of profits.”

A spokesman for Diageo told FoodManufacture.co.uk: “We are proposing to take 80 roles out of the business but we have not made anyone redundant. These are still proposals and we will consult with affected employees. Where possible we will manage the change and minimise the impact on individuals.”

This change will be managed through a phased process in consultation with employees and implemented over the next financial year until June 2014. Diageo will seek wherever possible to minimise the impact of any change.

£1.bn investment to continue

The review reconfirmed that Diageo’s £1bn investment programme​ in Scotland to increase Scotch whisky production would go ahead as planned.

The £1bn capital investment over the next five years will see the construction of at least one new malt whisky distillery, capacity increases at around half of Diageo’s existing distilleries and a significant warehouse expansion programme.

A spokesman for Diageo told FoodManufacture.co.uk: “The £1bn investment will create over a hundred new Diageo jobs, largely high value jobs in rural areas of Scotland. It is also expected the investment will create an average of 250 construction jobs for each year of the five investment period and in wider Scottish economy there will be a knock on effect which will generate around 500 further jobs supported in the supply chain by the expansion.​”

Related topics: Drinks

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