McBride factory

Household goods maker McBride is to let go 400 UK staff

McBride is planning 400 UK redundancies as part of a new cost-cutting programme designed to save £12m a year.

The own-label household and personal care supplier said it was looking to remove unprofitable business and reduce capacity in the UK because of “a deterioration in the UK retail environment”.

It said it expected to make 400 redundancies from its 1,600-strong UK workforce. The cost-saving programme, which will cost about £14m to implement, is expected to deliver £16m in annual savings by June 2016, with £3m being delivered in the coming financial year.

McBride made the announcement in a pre-close trading update for the year ending 30 June. It said it expected group full-year sales to fall by 3% on a constant currency basis.

Continued growth in Poland, Germany, France and the Benelux countries was offset by weakness in the UK and Italy and a move away from contract manufacturing, it said.

“We are announcing a robust plan that will help restore our UK profitability,” said McBride CEO Chris Bull.

“We will exit some business in non-core unprofitable categories, but our capacity to meet growth opportunities in our core categories remains unaffected. We will be entering into full and meaningful consultation with colleagues affected by these proposals.”