The meat processor confirmed the site would soon commence collective consultation with the site works committee over the potential loss of 464 jobs. Existing commercial commitments will come to an end in August this year.
A spokesman for Tulip said the loss of the contract was unexpected and the business had been “deeply disappointed” by the decision.
“Tulip has a high profile in the area and remains committed to the region, with other sites in Ruskington, Spalding and King’s Lynn, as well as Boston,” said the spokesman.
“We will explore every opportunity to look at alternatives and minimise any impact on our people’s livelihoods. In the meantime, we are committed to seeing out our existing contractual obligations.”
Commenting on the potential loss of jobs at the Boston site, an M&S spokesman said: “. We understand that there are some impacts locally when changes are made and we will always work with our suppliers to support them and make those changes in the right way.
“While we won’t be working with Tulip at the Boston site they remain an important supplier for other products and we will be doing all we can to support them as they consult with their team.”
The news comes a month after parent company Danish Crown announced plans to axe between 300–400 staff as part of plans to bring costs in line with its budget. The DKK200m (£25.75m) cost-saving programme resulted in 150 Tulip employees losing their jobs in November last year.
The Tulip spokesman added: “Tulip’s cost-saving programme remains unchanged by this news. We are committed to saving DKK200m during the current financial year and getting the business back into profit.
“This has been boosted in recent weeks, having signed new long-term agreements with two key strategic customer partners. However, our immediate focus is on ensuring we support our colleagues in Boston.”
Meanwhile, last month, Young’s Seafood revealed it was to axe 50 jobs at its fish processing plant in Scotland, following investments in automation and process improvement at the site.
“The delivery of these improvements in productivity now require the company to review its present manpower needs, and the company is now proposing to restructure its shift patterns and reduce its headcount at the site by approximately 50 roles,” said chief executive Bill Showalter.