The company is blaming the Government’s introduction of increased National Insurance payments from August.
Kevin Georgel, CEO of ST. Austell Brewery said in a letter that the company is taking “difficult but necessary steps” to secure the future as the government has placed financial strain on the company.
The brewery employs over 2000 people across the South West and operates more than 160 pubs in the region.
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National Insurance Payment Increases and Financial Strain
Kevin Georgel, Chief Executive, ST. Austell Brewery said: “We have this week communicated to our teams that we will be entering into a 30-day period of collective consultation.
“The process will involve us consulting with team members across multiple departments and may result in a reduction of up to 40 roles through redundancy. Our teams in our managed pubs are not included in the consultation process.”
Impact of Employment Costs and Job Losses at ST. Austell Brewery
He continues: “The additional cost of employment amounts to a further £3 million a year and it is not realistic, nor appropriate, to presume that we can pass on all the increased costs onto our guests or customers.”
“The decision to explore potential redundancies is not one that has been taken lightly. The proposed changes reflect a considered and measured response to the challenges we face and will help ensure that the business remains fit for the future.”
