St Austell Brewery, based in south-west England, is looking to make a reduction of up to 40 roles – 2% of its workforce – through redundancies.
The Cornwall-based brewer’s CEO, Kevin Georgel, confirmed in a letter to staff that new employment costs introduced by the UK Government have led it to review its operational structure. A “collective consultation” will run for 30 days with employees across multiple departments, excluding the employees in St Austell’s managed pubs.
“The brewing and hospitality sector has had an extraordinarily difficult few years – one of the most challenging periods in our 174-year history,” Georgel said. “We have successfully navigated these challenges, but they have been compounded by the significant increases in National Insurance announced in the autumn budget, which are effective from April,” Georgel said.
“The additional cost of employment amounts to a further GBP3m (US$3.9m) a year and it is not realistic, nor appropriate, to presume that we can pass on all the increased costs to our guests or customers.”
“The decision to explore potential redundancies is not one that has been taken lightly. The proposed changes reflect a considered and measured response to the challenges we face and will help ensure that the business remains fit for the future.”
The chief executive added that St Austell is still profitable but “financial headwinds” have caused it to look to reduce its “fixed cost base”.
The independent business, which brews brands including Tribute pale ale and Proper Job IPA, employs around 2,000 people. It operates two breweries – one in St Austell and the other in Warmley, near Bath – as well as around 160 pubs.
According to a report released last month, the UK had 100 fewer breweries in operation at the start of 2025 compared to a year ago.
