PepsiCo (NYSE:PEP) has announced on Wednesday plans to close a Walkers crisp factory in northern England, putting 380 jobs at risk.
PepsiCo, whose UK products include Walkers crisps, Pepsi Max soft drinks and Quaker porridge, have said this decision has nothing to do with Brexit, and that crisps currently produced at the site would be manufactured at other sites in Britain.
“Peterlee has been an important site for our business but the changes we are proposing present significant productivity and efficiency savings crucial for ensuring the long-term sustainable growth of our business in the UK.” said Tracey Foster, Peterlee Manufacturing Director at PepsiCo UK in a statement.
“We appreciate this is upsetting news for everyone at the Peterlee site. It is a difficult proposal for us to put forward and we want to make clear that it in no way reflects the performance of our colleagues at Peterlee, who we are grateful to for their hard work and commitment.
“No decisions will be made without first consulting employees and their representatives. We would also like to reassure colleagues that we will be providing on-going support and assistance from this point onward.” she added.
PepsiCo has recently had a challenging period. Last month it forecast that 2017 adjusted earnings would be below well below analysts’ estimates, citing weakness in its international markets, particularly in regions such as North Africa, the Middle East and Asia.
GMB regional organiser Michael Hunt said: “It wasn’t long ago that the government said they wanted to reinvigorate the region and inject business into the North East but the opposite appears to be true.
“This is terrible news for our members – the employees – and their families, and for the town of Peterlee” the union representative added.
PepsiCo employs almost 5,000 workers across eleven sites in the UK, including a factory in Leicester that producers Walkers crisps, which is the largest crisp factory in the world.