600 jobs to go at Premier Foods
The company had said in October that it would need make £20m cuts by 2013 to focus on eight of its core brands following debt troubles.
In a statement issued today, Premier said it now expects these cuts to double to £40m.
“A series of cost saving programmes will be initiated throughout the year that will result in reductions in the workforce, mainly from overhead functions,” it said.
“These reductions, which will be subject to appropriate consultations, are expected to amount to approximately 5% of the company’s current workforce of around 12,000 employees,” it continued.
Premier will use the money from the 600 jobs lost to double the marketing spend for its eight power brands: Hovis, Ambrosia, Mr. Kipling, Sharwood’s, Loyd Grossman, Bisto, Oxo and Batchelors.
It also plans TV ad campaigns for six of the brands.
Company CEO Michael Clarke said: “While decisions to reduce the workforce are always difficult, I’m convinced we are taking the right steps in the long term interests of the business, employees and our stakeholders.”
