More than 60 jobs are under threat at Cornish business Warrens Bakery as it looks to boost efficiency.
The “challenging economic climate” has prompted the company to undertake a restructuring that it said would stabilise the manufacturing operation.
As a result, a total of 66 staff in production and distribution roles at the firm’s Plymouth and St Just sites have been placed at risk of redundancy.
Warrens said the retail side of the business would not be affected, and that around 495 staff would be retained following the proposed reorganisation.
"We’ve taken time to explore all options systematically and concluded that this is unavoidable to ensure a stable future for the overall business and its wider workforce,” said a spokesman for Warrens.
“Change can be hard, but it’s vital that we are fit for purpose in a challenging manufacturing sector, where raw materials, transport and other costs have risen significantly. These measures will ensure that Warrens Bakery remains focused, healthy and a vibrant part of the UK bakery scene going forward.”
Warrens, which won the Craft Bakery Business Award at last year’s Baking Industry Awards, now operates around 70 stores. It kicked off its franchise operation in February 2017 with a store in Sutton Coldfield, near Birmingham, and has expanded rapidly outside its south-west heartland through franchise partnerships.
Last October it bought three of its franchise stores – Bridgwater, Taunton and Yeovil – to relaunch them as managed sites following an agreement with its local franchisee.