- My Account
- Logout
- Register
- Login
Diageo reveals profit amid job cuts
Related Articles
27 January 2009
Diageo, whose brands include Smirnoff and Guinness, said it suffered a "challenging" year to June, with pre-tax profits slightly lower than last year.
It plans to close its Johnnie Walker bottling plant in Kilmarnock with the loss of 700 jobs and shed a further 200 jobs from the Port Dundas distillery in Glasgow.
A cross-party campaign has been launched to try to persuade the firm to change its plans, but Diageo said it had not yet considered the proposals.
Gina McCurry, a forklift driver at the Kilmarnock plant, was among the protesters at the company's headquarters in London. She said the aim of the campaign was to impress upon the firm that it does not have to close the site.
"Diageo are obviously making billions of profits, there is no need to close the plant," she said. "It's not a case of 'we're not making money', it's a case of 'we're not making enough money'."
Scotland is one of Diageo's largest spirit supply centres, currently employing about 4,500 people and producing nearly 50 million cases of Scotch whisky and white spirits. Diageo said it will partially offset the planned cuts by creating 400 new jobs at its packaging plant in Fife.
Alternative proposals aimed at saving the 900 jobs have been drawn up by trade unions, local authorities, Scottish Enterprise and politicians. These could see production continue at the Port Dundas distillery in Glasgow, as well as the development of a new plant at Kilmarnock.
But Diageo chief executive Paul Walsh appeared to dismiss the effort to save the plants. He told BBC Radio Scotland: "I'm aware of the jobs campaign and am aware that people are almost trying to dent the image of the (Johnnie Walker) brand, which will not be good for the remaining employees. So I think it's very, very short-sighted."
He said while the job losses were "tragic" he was focused on creating a viable future for the business. He pledged to keep an open mind on the plans put forward by First Minister Alex Salmond, which were sent by letter, but warned that they would have to be clear on how the Government would support the business.
Top stories in News in brief
News in brief in Pictures
Top stories in News in brief
News in brief in Pictures
-
London gets ready for the Diamond Jubilee - in pictures
-
EXCLUSIVE: I won't play with Joey Barton, says Adel Taarabt
-
Diamond Jubilee: Boat by boat, here is where to watch the Queen's Thames flotilla - VIDEO
-
Duchess of Cambridge is pretty in pink at her first Buckingham Palace garden party
-
News pictures of the day
-
‘We will form a human barricade to keep missiles off our homes’
-
Regent’s Park rapist: Teenage jogger assaulted by stranger in terrifying 7am attack -
Major Coalition u-turn as George Osborne scraps ANOTHER tax plan
-
Horror on the 5.53! Commuter dragged 200 feet after getting hand trapped on train -
Hunt-ed: Labour pile on pressure for Culture Secretary
The O2
Check out the cool stuff happening under our tent such as the hottest gigs, comedy, sport, films, clubs, bars, restaurants and much more.
A home to be proud of with Halifax
Download the Halifax's brilliant, free new Home Finder app, and take all the pain out of finding your dream home.
Can you imagine a career in teaching?
Be inspired to teach - let real teachers show you how rewarding the job can be.
Playing a game-changing role during the Games
Cisco is providing the solutions for London 2012's complex IT needs.
Win a Silverstone track day with Zantac 75
Feel the burn of a different kind - 20 Silverstone motoring experiences to be won
Celebrate with MARTINI®
This weekend toast one royal with another and make your Jubilee sparkle with a MARTINI Royale.
Reader Offers email A fantastic selection of
offers, giveaways and
promotions.
Why I think doctors are right to strike
Family pay tribute to the London man who gave his life to save a five-year-old girl from drowning
Eton schoolboys fly Games flag on Everest
Shrimpy's - review