One of Wales’ largest food companies has announced it is in consultation with employees about potential job cuts due a drop in hospitality trade, sparking alarm from industry leaders.
Castell Howell Foods, a Carmarthenshire based food wholesaler and processor, employs more than 700 people across its sites, but despite ‘efforts to increase sales to non-core business customers’ has seen weekly sales down by 65 per cent.
Fearing trade is unlikely to recover until 2021 and the UK Government furlough scheme set to end in October, the company has entered ‘a consultation process with staff so that financial losses are minimised once Government support ends.’
Castell Howell managing director, Brian Jones, said: “This has been a very difficult decision, and it saddens me personally as I know the concern that this consultation period will cause our employees. I sincerely hope that any jobs lost in the short term will eventually be re-created as and when the hospitality sector recovers.”
The Farmers’ Union of Wales described the news as ‘heartbreaking’.