Premier Foods to axe 600 jobs over weak demand

The Mr Kipling to Hovis firm said it would cut five per cent of its workforce in a bid to save £40m by next year.

It has not been decided where the 600 jobs will go, but they will be mainly administrative roles spread around the whole business.

Premier has a Manor Bakeries site in Barnsley, a Hovis site in Bradford and a Rank Hovis site in Selby, but these are manufacturing sites so are not expected to bear the brunt of any job losses.

No single site will take the bulk of the losses, although there will be head office redundancies in St Albans.

The debt-laden group, which has been given extra time by its banks to get its finances in order, wants to reinvest the savings in growing its eight key brands, which include Batchelors, Ambrosia, Oxo and Bisto.

It will double marketing spend behind these brands, starting with TV adverts for Sharwood’s and Loyd Grossman.

The company has been fighting for survival in recent months as profits plummet.