Thousands of jobs at risk in low-productivity firms

The super-efficiency of Britain's top food and drink suppliers will compel their less productive rivals to axe as many as 2,800 jobs over the next year, according to the latest report by Plimsoll Publishing.

Some 37 unnamed firms plagued by low productivity were most at risk, said Plimsoll. On average, these firms generate just £54,000 in annual sales per employee, resulting in staff wages equating to a hefty 29% of sales revenue.

The figures fall far short of those for the 43 most efficient firms, which make £171,000 in sales per person and £4,000 profit per head, meaning salaries represent just 12% of sales.

According to Plimsoll, the industry average is £119,000 in sales and £2,000 in profit for each employee, with salaries standing at 17% of sales.