Leading prepared veg supplier Kettle Produce has announced plans to restructure with the loss of up to 101 jobs.
The Fife-based business said due to changing trends in the marketplace and increased competition it was being forced to streamline management and supervisory structures.
The move means there will be, in total, 226 redundancy notices issued. However all staff affected will be invited to reapply for 100 new positions and a further 25 production operative roles.
The company, which employs 975 staff at two sites near Cupar, is now consulting with trade union USDAW over the moves.
Susie McIntyre, managing director, said: “It is extremely regrettable that jobs must go, but unfortunately we have to improve efficiency to meet the increasingly competitive demands of the marketplace.
“We experienced a difficult trading period over the last six months in what is a fiercely competitive market and we have no option but to take these steps to safeguard the interests of the wider business.”
She said they would be working closely with the trade union throughout the process.
Meanwhile, local politicians have hit out at Tesco, blaming the retailers sourcing policies for putting the squeeze on small suppliers.
Local Green party councilors said there was a connection between the job losses and Tesco’s £2 billion profit announcement.
However, Kettle Produce denied their decision was due to a squeeze from its retail customers and Tesco hit back, claiming it had helped to grow Kettle Produce’s business in the last two years.
