McBride, the maker of own-label household cleaning and toiletry products, is to reduce its UK workforce by a quarter, due to a fall in profits. The company currently employs around 1,600 people in the UK in four factories.
The company supplies most of the major UK supermarkets and some discounters such as Aldi. It also produces some of its own brand products, such as Oven Pride oven cleaner.
McBride indicated that a supermarket price war and a tough grocery market are responsible for the fall in profits, which are expected to be down by around 3 per cent this year.
Although the company has continued to grow in Poland, Germany, France and the Benelux, this was offset by weakness in the UK and Italy, and a move away from contract manufacturing. The company said it was also looking to remove unprofitable business, such as air fresheners, and reduce capacity in the UK.
Chief Executive of the company Chris Bull said that the job cuts would be implemented at all four of McBride's UK factories and that the company will be, "entering into full and meaningful consultation with colleagues affected by these proposals."
It is estimated that the redundancies will save the company £12 million a year by 2016 and will help restore UK profitability.
