Allied Bakeries is set to end bakery production at its Cardiff site following the loss of its largest own-label bread contract.
The company plans to stop bakery operations at the facility, which will continue to be run as a logistic depot for Wales and the south west of England. Bakery production will be re-allocated to other Allied sites.
Cardiff currently employs around 360 people and 180 staff are at risk of redundancy under the proposals.
The move follows a review of the troubled business after it lost a contract to supply own-label bread to Tesco. Allied has been making a loss for a number of years, although owner Associated British Foods said losses were expected to be smaller in the coming year.
Allied has since announced the departure of managing director Jon Jenkins, with the business switching to a joint leadership structure under Liam McNamara and Nick Law.
In a statement on the Cardiff plans, Allied said: “Earlier this year Allied Bakeries announced the loss of a major own-label bakery contract, following which we have undertaken a detailed review of our bakery network to optimise our production capacity, locations and routes-to-market.
“Our aim is to ensure we continue to supply high-quality fresh-wrapped bread to customers across the country as efficiently as possible.”
Allied has now entered a consultation period with Cardiff staff.
“If these proposals are accepted, it will regrettably result in some redundancies and we understand that this announcement will be unsettling for our colleagues in Cardiff,” said the company.