The effect of the coronavirus pandemic has been seen on a number of businesses. Apart from the travel and tourism, the pandemic has also affected a number of businesses who have been forced to cut jobs or cut down manufacturing of products to save revenue. Nestle is one of the companies which is all set to cut down almost 600 people as it is all set to shut down a factory in the United Kingdom. After shutting down the UK factory, it is all set to move its production to Europe.
Nestle said that the products which are currently made at Fawdon near Newcastle, will be moved to other plants in the continent and in Britain. The factory at Fawdon was established in the year 1958 and makes some products that include Fruit Pastilles and is expected to be shut down by the end of 2023. The decision of shutting down the factory has not gown down well with the GMB Union, who have claimed that the decision is ruthless and sickening and has been made in pursuit of profits.
On the other hand the company explained that it has announced its decision early as it will get time for consultation with the staff and the trade unions. The company also said that it is not taking for granted the fact that the decision would put a severe impact on the local area. Reports say that nearly 573 roles have been risked and are subject to consultation. Out of these, 475 are at Fawdon and 98 others are at Nestle in York.
Nestle has employed nearly 8,000 people in the United Kingdom and Fawdon has a number of small and low-growth brands. It also has a plant that has complex and diverse mix of production techniques. The firm has also explained that their manufacturing units in York and Halifax manufacture some of the biggest brands of Nestle.
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