Allied Bakeries has told employees at its Gateshead bakery that it is proposing to close the manufacturing site in February next year, putting over 100 jobs at risk.
The firm carried out a strategic review of its operations, following the announcement in March this year that it would close production on one bakery line and would review the viability of maintaining a bakery operation at its Gateshead bakery and distribution centre.
Allied said that while the distribution and transport depots at the site would be unaffected, “those employed in the manufacturing and support departments are potentially at risk of redundancy”.
Consultations are now under way with around 119 staff at the site – which currently employs 263 people – with a view to “potentially” making some redundancies.
Pat Love, general manager, Allied Bakeries northern region, said: “The potential closure of manufacturing at Gateshead has been an extremely tough decision and in no way reflects the commitment and efforts of all those who are currently working there.
“Our announcement is in response to the highly competitive nature of the market we operate in, the level of investment needed to bring the site to an acceptable standard, the need to strengthen our overall capabilities and our ability to respond to change in the future.”