01/07/2009

Drinks Giant To Cut 900 Scottish Jobs

Drinks giant Diageo has announced it is to axe 900 jobs in Scotland as part of a major restructuring of its operations.

The plans mean the company's Port Dundas distillery in Glasgow will close, along with its packaging plant in Kilmarnock.

Diageo will also be outsourcing some of its warehousing operations.

The company – which has its headquarters in Edinburgh – said the closures will take place over the next two years, adding that the job cuts would be part of a £100 million cost-saving programme.

But Diageo said changes in the region will also see 400 jobs created through the expansion of its packaging plant in Fife.

Around 3,500 workers are currently employed by the firm in Scotland.

Bryan Donaghey, Managing Director of Diageo Scotland, said: "These decisions have been extremely difficult to take. We have only reached them after an exhaustive review of all the possible alternatives.

"I am sorry for the impact this announcement will have on our employees and their families in Kilmarnock and Glasgow and the difficulty this will cause in Kilmarnock, where we are a major employer."

He added: "We believe the plans announced today will help secure the sustainability of our business in Scotland. We will do everything we can support our employees through this difficult time.

"We will also work closely with local political and community leaders in Kilmarnock so that together we ca seek to address the impact this announcement will have to the town."

Diageo has two grain distilleries – in Cameronbridge, Fife, and in Glasgow – and bottling plants in Shieldhall, Glasgow, Kilmarnock and Leven, Fife.

(JM/BMcc)

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