Western Isles Council to work with Isle of Harris Distillery after 'regrettable' job cuts

A council has said it will work with a whisky distillery in the Outer Hebrides after it announced job cuts as part of a restructuring programme.

The Isle of Harris Distillery announced on Tuesday that restructuring was needed to “safeguard the future” of the business.

Best known for being the maker of the Isle of Harris Gin, the distillery was established a decade ago with just ten employees.

Now employing 50 people, the company will commence with a round of voluntary and potentially compulsory redundancies.

Comhairle nan Eilean Siar has said it will engage with the distillery in an effort to raise any solutions to retain employees following the announcement.

In a statement, the distillery’s managing director Simon Erlanger said challenging headwinds in the spirits industry had led to “incredibly difficult decisions”.

He 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 which 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. It is deeply regrettable we find ourselves in this situation and would like to take the opportunity to thank our entire team, particularly those affected by the changes, for their dedication and contribution to the business.

“To date, Isle of Harris Distillery represents a £20m+ investment in the island economy. 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.”

The news comes after The Scottish Whisky Association warned that tariffs imposed by the US – its most important overseas market – would be a “huge blow” to the spirits industry.

Comhairle nan Eilean Siar described The Isle of Harris Distillery as a “world-renowned brand” and said they will reach out to the UK and Scottish Governments in an effort to gain an understanding into any external factors affecting the restructuring.

Cllr Paul Steele, leader of Comhairle nan Eilean Siar said: “Our primary concern following this announcement is the wellbeing of the employees impacted by this decision and their families.

“It is incredibly disappointing that one of the islands most recognisable brands has made the clearly difficult decision to make staff redundant. The Comhairle will engage with the distillery to discuss this matter and support any solutions to retain employees and strengthen the business.

“It is important that we gain an understanding of external factors that may have contributed to this situation. The Comhairle will make representation to UK and Scottish Government on these factors where appropriate.”