Isle of Harris cuts jobs and production
Scotch whisky and gin maker Isle of Harris Distillery will restructure its business after facing “challenging headwinds”, cutting jobs and production in the process.
The distillery was established in 2015 and is one of the largest employers on the Isle of Harris in Scotland with 45 members of staff.
In a statement, the company confirmed it would implement a restructuring programme, following “challenging headwinds” in the spirits industry.
Simon Erlanger, managing director of Isle of Harris Distillery, said: “In a move to safeguard the future of our business, today we are introducing a restructuring programme, which will see reduced production and workforce at the distillery.
“Much like our colleagues in the wider spirits industry, we are facing challenging headwinds that have led to some incredibly difficult decisions.
“Following a number of cost-cutting measures, voluntary redundancy is being offered to staff in the first instance, with compulsory to follow thereafter if we do not fulfil our cost reduction target.”
The company did not disclose how many jobs would be affected as consultations are ongoing.
As part of the restructure, the business will now move from two shifts a day to one in its distillation.
Erlanger called the situation “deeply regrettable” and expressed his thanks to the team, particularly to those affected by the restructure, for their “dedication and contribution to the business”.
He noted that the Isle of Harris Distillery has invested more than £20 million (US$26.7m) in the island’s economy.
He added: “We remain true to our founding purpose as a sustainable, multi-generational firm built to support the community for many years to come. The regrettable measures now being taken are necessary to help fulfil that long-term vision.”
In 2022, Isle of Harris Distillers agreed a £10 million (US$12.46m) funding package from HSBC UK to expand globally.
The distillery released its first single malt, The Hearach, in September 2023, followed by a second permanent expression a year later.
Earlier this month, American single malt Westward Whiskey filed for Chapter 11 bankruptcy to restructure the business, after facing ‘significant liquidity challenges’.
Distilleries scale back
Many whisky distillers are scaling down production as supply has outpaced demand after years of growth and investment across the category.
This month, Jameson maker Irish Distillers suspended production until summer.
Meanwhile, Irish whiskey maker Tullamore recently confirmed it would pause production for three of its nine stills, with a further three to be paused at a later date.
Isle of Harris is not the only distillery reducing its workforce.
Denmark’s largest whisky maker, Stauning, recently cut approximately 25% of its workforce following Diageo’s exit from Distill Ventures.
Green River Distilling, based in Owensboro, Kentucky, also laid off a quarter of its staff in April.
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