By Up to 200 redundancies to be made at TSC Foods factory
The TSC Foods factory in Scunthorpe have announced that up to 200 jobs are to be lost due to redundancies, as the company claims a slump in demand.
Currently, 450 people are employed at the facilities.
The company says it has seen a 75% decline in business due to the coronavirus crisis.
Demand is expected to continue to slow down over the next 12 months.
Despite reassurances that demand would pick up soon, furloughed employees received the news via conference call on Thursday morning.
Bosses have said that it expects to cut its workforce in half within 45 days in an effort to cut costs.
Cemex in South Ferriby is also cutting around 100 job losses.
And, the impending closure of the Novartis factory in Grimsby is expected to result in up to 400 job losses.
TSC Foods specialises in chilled soups and sauces, many of which sell in major supermarkets.
However, a major part of its business is supplying to restaurants, pubs and catering, trades which have effectively been closed down since the beginning of the crisis.
The company says the steep decline in production has forced it to protect the business’s future by cutting expenses.
It says that regulations introduced to fight the coronavirus along with long-term closures of businesses have had “a significant impact on the food service industry”.
TSC managing director Ray Pigg added:
“We’re all aware of the challenges the events of the last three months have posed for businesses in many sectors.
“Long-term closures and regulatory changes, though necessary and important for public safety, have had a significant impact on the food service industry.
“The new operational restrictions placed on our customers mean they require much less from us as they start to emerge from this scenario, which in turn, impacts our forecast significantly.
“With this in mind, we have conducted a considered and in-depth review of our market position and it is clear that to protect the future of the business, we must operate from a lower cost base.
“Unfortunately, this means we must start the consultation process for up to 200 redundancies, set to impact all areas of TSC.
“I understand that this is disappointing and upsetting for many of the wonderful people inside our business.
“We will be communicating with our employees immediately on next steps and we’re committed to complete transparency to minimise the impact, wherever possible, on those affected.”
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