Potential job cuts at Castell Howell Foods Ltd in Carmarthenshire due to impact of coronavirus pandemic
Carmarthenshire-based food wholesaler Castell Howell Foods Ltd says the company has entered into a period of consultation with its employees over potential job cuts.
It says the potential job cuts are due to the impact the coronavirus pandemic has had on the food and hospitality sectors.
The company employs over 700 people across its sites, but says it is unable to say how many jobs could be lost.
A spokesperson for the company said: “Sadly, the effect of the pandemic on the foodservice and hospitality sector means that we have to enter into consultation with staff in relation to potential job losses. Despite our efforts to increase sales to non-core business customers, retail/public sales and other new markets, our weekly sales are down by 65%, and it appears unlikely that trade will recover fully until well into 2021.
"Major events have been cancelled, and it is likely that our core customers such as schools, pubs, restaurants, hotels, cafés and workplace catering will not open to full capacity for several months.
"As the UK Government’s furlough scheme is due to end in October, we regrettably need to start the consultation process with our staff so that further financial losses are minimised once Government support ends.
"We are unable to confirm how many jobs could be lost, as this depends on the extent to which our customers are able to resume trading while operating within social distancing rules. Cuts are expected to come from a combination of voluntary and compulsory redundancies and reduced hours."
The spokesperson added: This safety action will ensure that we are able to continue to provide our customers with a level of service to support them as they begin to reopen their businesses. We hope that during the consultation period, more customers will have the opportunity to resume trading and that a clear plan for the sector will become apparent. This will help mitigate the total number of job losses and allow businesses to plan with a degree of certainty.
"We have to begin this safety action to protect the medium to long term viability of our business and to ensure that our role in the supply chain to key customers which include the NHS and Local Authorities is not compromised.”