Nestlé plans to cut 600 jobs and move part of its production to Europe Business

Nestlé plans to close a confectionery factory and cut nearly 600 jobs by moving production of some products to Europe.

The Swiss company proposes to close its site in Fawdon, Newcastle upon Tyne, towards the end of 2023, with the loss of around 475 jobs, and to cut another 98 jobs in York.

“We have chosen to announce these proposals as early as possible in order to allow as much time as possible for consultation with our colleagues and unions,” said Nestlé.

The Fawdon factory, which opened in 1958, manufactures products including fruit pellets, while the York site manufactures KitKats.

Nestlé, which employs 8,000 people in the United Kingdom, is proposing to transfer the production of products from Fawdon to other factories in the United Kingdom and Europe.

The company said it would support affected workers in a consultation process.

The proposals include a £ 20million investment in the York factory to modernize and increase production of KitKat, where the brand was first established in 1935, and a £ 9million investment in Halifax to take over most of Fawdon’s production.

If these proposals come to fruition, Nestlé said we plan to manufacture a higher volume of products overall from a smaller number of factories.

“We believe these proposals would strengthen the UK’s position as a critically important hub for Nestlé confectionery and home to the expert manufacturing of several of our most popular brands, including KitKat, Aero and Quality Street,” the company said.

Ross Murdoch, national official of the GMB union, said: “To ruin hundreds of lives in a ruthless pursuit of profit, to the same workers who kept the company running during a global pandemic, is disgusting.

“Nestlé is the largest producer of food in the world, with astronomical profits. He can afford to treat workers well.

“Instead, they allowed factories to deteriorate, relocate production overseas, and now cut nearly 600 jobs.”