The parent company of UK-based health & beauty retailer Boots is to cut 200 jobs over the next two years across its manufacturing business in Nottingham, it has been announced.
As the group seeks to “sustain a competitive advantage”, it is undertaking a new strategic approach and hopes to reduce manufacturing volumes across its business BCM, while also investing in new technology to support its products.
A new strategic approach aims to improve efficiency across its Nottingham-based factory as the group focuses on its leading beauty and skincare products, among other popular lines, according to a statement.
Exiting specific areas of third-party manufacturing has proved necessary to offset a decline in demand for contract manufacturing at a time when regulatory compliance requirements have increased.
Such a re-organisation will incur a one-off cost of just over £30 million, of which £18 million is non-cash, the group said, adding that the cost will be incurred in 2012/13.
Commenting on the redundancies, Alex Gourlay, CEO of Alliance Boots‘ Health & Beauty Division, said: “By modernising and improving the efficiency of our Nottingham factory, we strengthen its position for the future and make it more suited to support the increasing global footprint of our product brands.
“It is an important step in our continued efforts to keep contract manufacturing in the UK, despite the ongoing challenges that the industry faces.”