Saputo announces job cuts amid shift away from infant formula market

UK – Saputo Dairy UK, a major player in the dairy industry, has revealed plans that could see up to 80 jobs lost across its UK operations, with the majority affecting its Davidstow Creamery in Cornwall. 

The company intends to exit the infant formula market, a move that has sparked concern among workers and local communities.

According to a statement from Saputo Dairy UK, the decision involves halting the production of demineralised whey and galacto-oligosaccharides, ingredients used in infant formula, at its Davidstow facility. 

The firm plans to shift focus back to sweet whey powder production instead. This change comes as a response to shifting market demands and demographic trends, which have reduced the need for certain whey products. 

The company cited challenging market conditions as a key factor, pushing Saputo to simplify its operations and boost efficiency for long-term stability.

The Davidstow Creamery, located near Camelford, is set to bear the brunt of the cuts, with around 60 jobs at risk. 

An additional 20 redundancies are expected across other UK sites, though Saputo has not specified which locations will be affected. 

The company emphasized that its cheese production and milk supply from local farms will remain unchanged. 

“Market conditions have forced us to take tough but necessary steps,” the company said, underscoring the need to adapt to ensure the business thrives in the future.

The announcement has raised alarm in Cornwall, where the creamery is a significant employer. Saputo, a Canadian multinational that acquired the facility in 2019 through its purchase of Dairy Crest, is one of the UK’s leading cheese manufacturers. 

The potential job losses follow a difficult financial period for the company, with a reported loss of C$518 million for the last quarter of 2024, a sharp decline from the C$124 million loss the previous year.

Local leaders and employees are bracing for the impact. “We’re committed to supporting our staff through this transition,” Saputo added, promising assistance for those affected.