Major drinks firm Diageo has announced 900 jobs cuts at its various sites in Scotland.

Drinks firm Diageo has announced it is to cut up to 900 jobs in Scotland as part of a restructuring initiative.

The restructuring at the firm is expected to save Edinburgh-based Diageo around £40 million over the next two years and ensure the future viability of the business.

As part of the restructuring, the company will close its Port Dundas distillery in Glasgow and its packaging plant in Kilmarnock. Also various warehouse activities will be outsourced in a bid to cut costs.

The closure of the packaging plant in Kilmarnock, East Ayrshire would result in 700 of the total jobs losses. Up to 140 jobs will be lost as a result of the Port Dundas distillery closure. A further 30 jobs will be cut at the Shieldhall packaging plant in Glasgow.

No compulsory redundancies will be enforced for the next 12 months.

However, despite the numerous announced job cuts, Diageo aims to offset the figure with plans to create up to 400 new jobs through the expansion of the Leven packaging plant in Fife.

Bryan Donaghey, Managing Director of Diageo Scotland, said: “These decisions have been extremely difficult to take. We have only reached them after an exhaustive review of all the possible alternatives.

“I am sorry for the impact this announcement will have on our employees. And their families in Kilmarnock and Glasgow and the difficulty this will cause in Kilmarnock where we are a major employer.”

Diageo is the world’s leading premium drinks business with alcoholic brands such as Guinness, Smirnoff and Baileys.