Irn-Bru and Strathmore Water owner to axe up to 90 staff

Irn-Bru and Strathmore Water owner AG Barr is to cut up to 90 jobs as part of an ongoing business restructuring.

The firm is planning to offload 10% of its workforce before the end of the financial year as it looks to make annual cost savings of around £3 million.

The plan is part of the Fit for the Future business reorganisation scheme which has seen the group significantly invest in assets, infrastructure, processes and systems over the last three years.

The company said it was now looking to “optimise” the improvements made through a business-wide reorganisation designed to increase service levels, efficiency and speed to market.

Barr’s said that its actions were designed to put the business in a “strong position to grow and develop shareholder value in the short, medium and longer term.”

It will not be known whether jobs will be lost at Strathmore Water’s production facility in Forfar until after a statutory consultation on the proposed redundancies is complete.

The group added: “Our organisational restructure is likely to impact around 10% of our total employee base and, as such, around 90 job losses are possible across our commercial, supply chain and central functions.”

Revenues in the six months to July 30 fell by 2.8% to £125.6m. Pre-tax profits rose strongly to £21.1m from £16.9m a year earlier, but the current year figure includes an exceptional credit of £4.1m from the closure of the company’s defined benefit pension scheme.

CEO Roger White said: “We are beginning to see the benefits of our product development and innovation initiatives with both consumers and customers.

“Market conditions remain volatile and somewhat unpredictable. However, assuming a strong trading performance in the key festive period, we remain on track to deliver profit (before tax and exceptionals) slightly ahead of last year.”

Roger White, chief executive of AG Barr, which is to cut up to 90 jobs as part of a restructuring programme.