Job cut fears as Diageo plans review of Scottish operations

Published on Tuesday 30 June 2009 20:37

DRINKS giant Diageo was this morning set to announce a major restructuring of its Scottish operations, sparking fears of job losses and plant closures north of the Border.

Workers at Diageo's 50 Scottish sites were yesterday told to meet at their place of work at 8:45am where they are to be informed of a "review" of the firm's Scottish operations – which is likely to include significant numbers of job cuts.

The firm, which employs 3,500 workers in Scotland, said in February that it would axe jobs worldwide as part of a major 100 million cost-saving programme, but did not specify where the cuts would be made.

It is understood workers were informed in March that a review of Scottish operations was under way and would be completed by the end of July.

One employee, who asked not to be named, said: "People are all very worried about what is going to happen.

"We are expecting quite widespread job cuts. We are quite concerned."

A spokesman for Diageo yesterday confirmed that an announcement detailing the outcome of the review would take place – but refused to give details of the proposals.

He said: "We have a policy of speaking to our staff about any changes first.

"We told staff in March – and updated them again in May – that we were conducting a review. This announcement will tell them the outcome of what has been decided.

"A consultation period will then take place over any proposed changes."

An insider told The Scotsman it was expected that a grain distillery and a bottling plant could be among the casualties.

Diageo has two grain distilleries – in Cameronbridge, Fife, and in Glasgow – and bottling plants in Shieldhall, Glasgow, Kilmarnock and Leven, Fife.