Wedgwood to cut 1,800 jobs

THE MAKER of Royal Doulton china, Waterford Wedgwood, is slashing nearly 2,000 jobs as part of a £61m global restructuring. Around 500 worldwide jobs will go from the Royal Doulton division, with a further 485 jobs to go from the Waterford Crystal Dungarvan plant, which is being closed down.

The remaining jobs will be cut from various global locations, including 160 from Rosenthal in Germany.

In total, 1,800 jobs will be cut, leaving the company with 9,500 people following the restructuring. It said it needed the cost savings to return to 'sustainable profitability'. It has seen sales slip in recent years after coming under pressure from cheaper products produced in China and the United States.

Chairman Sir Anthony O'Reilly said: 'The task is clear but the challenge is great. We must ensure that our cost base matches revenue levels so that the company is returned to sustained profitability. I am determined Waterford Wedgwood will become the low-cost operator in its sector.'

It warned in March that sales were below last year's levels and that it was reviewing its fixed cost base to match production to demand. It said its year end results, due on 16 June, will be 'adversely affected' by the lower sales figures and tighter margins.

The company also revealed plans for a €100m rights issue, making 1.7bn shares available at six cents each.