Workers at the Jacob’s biscuit and cream cracker factory in Liverpool face prospect of compulsory redundancies if the company does not get enough volunteers. Tony McDonough reports

Plans to cut jobs at the Jacob’s cream cracker and biscuit factory in Liverpool could result in compulsory redundancies – although the company has told LBN the original number of losses has been reduced.

Factory owner Pladis announced 361 jobs cuts – around half the current workforce at Aintree – in late 2023. The process is still ongoing with the company hoping to find enough volunteers by the end of 2025.

LBN understands that so far around 200 people have come forward seeking voluntary redundancy. If more workers don’t volunteer then Pladis may have to announce compulsory redundancies.

More than 700 people are employed at the site producing Cream Crackers, Twiglets, Jaffa Cakes cake bars, Mini Cheddars and Cracker Crisps. The plant did produce Club biscuits but the ‘chocolate room’ has now been relocated to Manchester.

Turkish group Yildiz is the ultimate owner of Jacob’s. It is run by a division of the business called Pladis, whose other brands include McVitie’s Biscuits.

In November 2023 the group announced an overhaul of the site. In a statement then it said: “Jacob’s is one of the most iconic brands in the UK and has been around for over 100 years.

“To ensure it can remain for another 100 years, it is essential we address the current constraints we have at Aintree.

“We have therefore proposed some changes at the site which include a significant investment in the infrastructure but reducing the overall site footprint.”

On Monday, a spokesperson for Pladis told LBN: “Following our proposal in 2023 to reduce the operational footprint of our Aintree Bakery, collective consultations with our colleagues were completed last May with individual consultations now drawing to a close.

“As a result of these discussions and with the support of the unions, we have been able to reduce the overall number of jobs impacted. We are doing everything we can to support our colleagues who have been impacted by this decision.

“Improvements to the site are also underway with significant investment being made to update machinery and general working conditions at the site.

“These steps are helping us ensure that our Aintree Bakery can continue to produce many of the Jacob’s snacks we sell and protect the future of this iconic British snacking brand.”

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Jacob’s, which can produce up to 6,000 cream crackers every minute, was started in Waterford in Ireland in 1851. Its UK operation became a separate business in 1922. 

It became part of Associated Biscuits in 1960 and then Nabisco in 1982, followed by Danone. United Biscuits acquired the business in 2004.

Private equity firms Blackstone and PAI bought United Biscuits for £1.6bn in 2006. In 2014, United Biscuits was acquired by Yildiz for a reported £2bn.