DS Smith Moves to Shut Launceston Plant, 167 Jobs at Risk

Context The Launceston factory has been a cornerstone of the Cornish town’s economy for nearly six decades. Staff reacted with shock and disappointment when the company announced a review of its UK packaging operations, citing tough trading conditions. Local politicians described the news as a “perfect storm” of rising costs and limited regional investment.

Key Facts - DS Smith confirmed a proposal to close the Link Road site and began a formal consultation with roughly 167 employees. The consultation period will determine the final outcome, but the company has halted further comment. - Employees expressed fear of job loss and uncertainty about their future, echoing concerns voiced by Cornwall Council member Adrian Parsons, who highlighted the plant’s reputation as a responsible employer with good wages and hours. - The proposed closure follows a 2024 reduction of 70 roles at DS Smith’s Louth, Scotland facility, part of a broader pattern of cuts across the firm’s UK sites. - Recent consultations at other locations—including Plymouth, Derbyshire, Newcastle, Sheerness, and Wellingborough—also resulted in closures, indicating a systematic restructuring. - Government officials acknowledged the commercial nature of the decision and noted that support is available for affected workers and families.

What It Means The potential loss of 167 jobs will deepen the employment strain in North Cornwall, where small and medium‑sized businesses already report pressure from higher national insurance contributions and minimum‑wage increases. The closure could accelerate a regional trend of job reductions in manufacturing and packaging, sectors already hit by rising material costs and a slowdown in demand.

Local MP Ben Maguire warned that the move reflects an “anti‑business” climate, urging the government to direct more regional growth investment to Cornwall. If the consultation ends with a shutdown, the town will lose a long‑standing employer, potentially prompting further out‑migration of skilled workers.

Looking Ahead Watch for the outcome of the employee consultation and any government response that could mitigate the impact on the local labour market.