Karro Food Group has started a consultation process that could see about 150 jobs go at the firm’s Billet Lane pork processing site in Scunthorpe.
About half the site’s staff of 362 could be affected by the redundancies, which are thought to be the result of a reduced bacon order from Tesco. The move coincides with Tesco’s announcement that it’s cutting the number of product lines it sells by more than 10% from 90,000 to 70,000.
“Following a significant reduction in bacon order volumes from a large customer of Karro Food Group’s Scunthorpe site, we have taken the reluctant decision to propose a reduction in roles at the facility,” a Karro spokesperson said. “As such, we have entered into a consultation process with employees, with around 150 jobs at risk of redundancy.
“Proposals of this type are taken extremely reluctantly, and only when all other options have been ruled out.
“However, unfortunately these proposals are essential in order to ensure Karro’s continued viability and growth as a business.
“We are working closely with Usdaw (Union of Shop Distributive and Allied Workers) and employee representatives to look for every opportunity to mitigate job losses and will support our employees in every way possible through this difficult process.”
The consultation process started on Tuesday and is likely to last for 45 days.
Karro has also given assurances that the site is not as risk of closure.
“Karro has significant work remaining at the site, and the Scunthorpe business remains a very viable part of the Karro business,” the spokesman said. “Karro expects to be able to grow the site again in the future as it now seeks new opportunities with other customers.”