Banknote maker De La Rue has announced it is to cut a hundred and seventy jobs at its manufacturing unit.
The company, which also prints passports, is axing the jobs at its Team Valley plant in Gateshead.
It has held the agreement to manufacture British passports on account that 2009, but ultimate 12 months the authorities provided a £490m deal to Franco-Dutch firm Gemalto to make UK passports following Brexit.
The Unite union stated that the decision “significantly undermined the economic viability of the Gateshead operation”.
De La Rue employs about six hundred people at the site. Some one hundred seventy jobs regarding manufacturing of foreign money notes may be reduced.
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Announcing the activity losses, De La Rue made no point out of the passport settlement.
It said: “As the sector’s biggest industrial banknote printer we regularly evaluate our operational footprint to make sure it meets worldwide demand.
“We are presently inside the final stages of a footprint restructuring program that was introduced in 2015 to make sure our commercial enterprise remains competitive on a global scale.
“As a part of that program we’re presenting to close one of the print strains in Gateshead and are presently consulting with all events concerned in this suggestion.”
The Unite union said dropping the passport settlement ought to have contributed to the move.
“The government’s quick-sighted and blinkered selection severely undermined the economic viability of the Gateshead operation,” stated Unite country wide officer Louisa Bull.
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