Alliance Boots to cut 200 jobs at Nottingham factory
Alliance Boots, the owner of health and beauty products retailer Boots, is to cut 200 jobs at its Nottingham factory over the next two years.
The move is part of a new strategic approach for BCM, the group’s contract manufacturing business, as it looks to refocus on its leading beauty and skincare product brands.
The programme will aim to improve efficiency and overall performance at the factory and reduce manufacturing volumes. It will also include investment in new technology to support Boots product development.
As part of the new approach, the business will exit some unprofitable areas of third-party manufacturing which will result in the reduction of around 200 jobs over the next two years. Alliance Boots said in a statement that efforts would be made to redeploy affected staff elsewhere in the group.
The one-off cost of the reorganisation will be just over £30 million, of which £18 million is non-cash. The cost will be incurred in 2012/13 financial year.
Alex Gourlay, chief executive, health & beauty division, Alliance Boots, said: “By modernising and improving the efficiency of our Nottingham factory, we strengthen its position for the future and make it more suited to support the increasing global footprint of our product brands. It is an important step in our continued efforts to keep contract manufacturing in the UK, despite the ongoing challenges that the industry faces.”
