More jobs to go as brewer steps up cost-cutting plans

Scottish
& Newcastle, the UK’s biggest brewer, has said that more job cuts could be
on the way as part of its £60m cost-cutting programme.

The
company’s reorganisation of its supply chain and plans to close breweries in
Newcastle and Edinburgh, have already saved the company £37m, but at the cost
of 800 jobs.

John
Dunsmore, head of Scottish & Newcastle’s UK division, told The Times that
the extra £23m of cost savings would come from "continuous
improvements" by the end of 2006. “I’m not ruling out job cuts,” he added.

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According
to business analysts, the cost-cutting programme is an important factor in the
brewery’s announcement of an 8.2 per cent rise in first-half pre-tax profits.

By Michael Millar