The drinks giant Diageo has announced that it plans to cut 900 jobs in Scotland, 700 of which will go as a result of shutting the packaging plant in Kilmarnock.
The decision to close the plant in Kilmarnock raises the question of what level of commitment a business should have to the community in which it is based. Diageo's decision has been taken because they feel that moving some of the jobs to alternative sites in Scotland and reducing their workforce makes the business more sustainable in a global environment. Sales were down 7% in the first three months of this year as a result of the economic downturn, particularly in Russia. However, the impact of the closure on Kilmarnock, a town which has already been badly hit in the recession, will be huge. The Johnnie Walker brand has been part of Kilmarnock since 1820, since John Walker established a shop and produced a blend which became the world's most popular whisky.
Although the Scottish Government has become involved in an effort to save jobs in the local area, it is difficult to see how they can change the course of action Diageo are planning to take.
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