The frozen food retailer’s wholly-owned subsidiary Iceland Manufacturing confirmed plans to review its business operations and potentially cut jobs at the site in Gorton, Manchester.
It is believed up to 150 jobs could be at risk at the site, according to local reports.
The firm declined to comment on the number of jobs at risk, but its md Bev Mitchell said: “I can confirm that Iceland Manufacturing has announced plans to restructure the organisation as a result of a review into its business operations.
Impact a number of employees
“Regrettably this will impact a number of employees at the site in Gorton, Manchester and we have now entered a consultation period with them.”
Iceland Manufacturing would not provide any further comment or updates until this consultation is completed, Mitchell said.
“… though naturally all our employees, whether at risk of redundancy or not, will be offered our support throughout the process,” she added.
Workers responded with a “stunned silence” when they were told about the jobs cuts, which could be about half of the 300 positions at the site, according to local media reports.
The cuts are said to include team leaders and production operatives.
Iceland Manufacturing Limited - at a glance
- Established in 2012
- Formally Loxton Foods
- Produces frozen food for Iceland’s stores
- Employs about 300 people
Produces Iceland’s frozen meals
Iceland purchased the site on Hammerstone Road in 2012 from Loxton Foods. It is now used to produce frozen food products for Iceland’s stores.
These products include frozen roast dinners, curries, sausage and mash, Chinese, chillis and Iceland’s ‘Posh Grub’ and ‘Hungry Man’ ranges.
Loxtons Foods was originally established in the late 1980s.
Iceland’s sales were hit by a triple whammy of intense competition from Aldi and Lidl, price deflation and changing consumer habits last year.
Its like-for-like sales declined by 4.4% to £2.69bn for the 52 weeks to March 2015.