Alliance Boots to axe 200 jobs

UK health and beauty retailer, manufacturer and wholesaler Alliance Boots is cutting 200 jobs from its contract manufacturing business, BCM, in response to a drop in market demand for contract manufacturing. The cuts will take place over the next two years, with Boots pledging to help redeploy staff elsewhere within the company.

The cost of reorganisation will be just over £30m, and includes the write-off of fixed assets and inventory, and the reduction in roles within the company’s Nottingham factory in the UK.

Operating as a standalone business since 2009, BCM is the contract manufacturing business of Alliance Boots, and one of the largest contract manufacturers in Western Europe. It manufactures consumer health and beauty products for internal supply and third party brands, and according to Boots, manufactures roughly 400 million units annually.

Although the job cuts are expected to affect BCM’s operations in Nottingham, it also has other European manufacturing facilities in France which specialise in the manufacture of skin care and cosmetic brands, and BCM Kosmetik in Germany which produces colour cosmetics.

Looking ahead, the company will refocus its business strategy on its leading beauty and skin care product brands, supported by investment in new product technologies and product development. It is also set growth via the US following its merger with US drugstore giant Walgreens in June last year.