Aberdeen, Scotland-based Nolan Seafoods is bracing for job cuts after losing a major contract, according to media reports and a statement from company chairman George Nolan.
Nolan Seafoods initially said it expected to eliminate as many as 80 of its 217 employees, according to Aberdeen’s Press and Journal, but that number was reduced to “fewer than 40 jobs” as its West Tullos-based plant, where the company processes salmon and whitefish.
"Nolan Seafoods (UK) Ltd. confirms that, due to volatile and unpredictable salmon and white fish market conditions and the loss of a major customer contract at short notice, regrettably it has had to inform staff of a planned restructuring of the company’s operations and the potential for redundancies,” Nolan Foods said said in a press release. “The company is exploring a number of options to minimize the impact on the workforce and to ensure the short and long term viability of the business. It has entered a period of consultation with staff and hopes to limit the number of redundancies to fewer than 40 of its 217 staff."
George Nolan said the company is seeking to assist its affected staff while also focusing on keeping the business on firm ground.
“We are communicating fully with our staff and working with all representatives to ensure that employees receive as much information and support as possible during this difficult period,” he said. “The company remains committed to providing quality service levels to our existing customers while exploring opportunities to develop new business.”
The Press and Journal reported that Nolan Seafoods recorded a 74 percent drop in pre-tax profits year-over-year, though it did see a rise in turnover, reaching GBP 31.8 million (USD 42.4 million, EUR 37.9 million) from March 2014 to March 2015.
