‘Far‑reaching impact’ after DHL job cuts at Essity's Prudhoe Mill

In December, logistics firm DHL - which distributes products for toilet paper manufacturer Essity - announced a "restructuring of operations" at its Prudhoe depot.

It is now understood that 47 DHL employees based at the site on Princess Way are set to lose their jobs between January 18 and 25.

The Prudhoe Mill is Essity’s largest site in the UK and a major local employer, with around 400 people working at the paper mill.

Essity confirmed that more than 20 roles were initially placed at risk at the Prudhoe Mill following the loss of a major retail contract, with the majority of affected employees being redeployed.

The Rail, Maritime and Transport Union (RMT) attributed the recent wave of job losses to Essity losing a significant contract with supermarket giant Asda.

Essity confirmed it has "exited a specific contract with DHL that relates to a single UK retailer" and said the end of the agreement led to the closure of one of its production lines at the Prudhoe paper mill.

Prudhoe Mill falls within the Prudhoe North and Wylam ward, represented by councillor Lawrence O’Donnell, who said the impact of the redundancies on families and their "sense of security" was "devastating".

"I can only imagine the uncertainty and anxiety they must be feeling right now," he said.

"This decision will have a far-reaching impact in Prudhoe and beyond, and my thoughts go out to each of the forty-seven DHL employees at the Prudhoe Essity Mill who are facing the awful prospect of redundancy.

"Following the closure of one of the production lines, I have every faith the managers at Essity are working day and night to restore the order book and ensure jobs at the mill are secured. I’ve seen for myself Essity’s impressive £30m investment in their paper recycling facility, which is a real vote of confidence in the Prudhoe site.

"I’ve been in contact with our MP Joe Morris and representatives from Essity. I’ve also been in touch with the RMT union and I’m reassured by the level of support they have given their members. If you need any support or advice going through this difficult process, please get in touch on 07889144695 or email me at Lawrence.O'Donnell@northumberland.gov.uk."

Prudhoe South councillor Gordon Stewart also said in December that he had begun working with Jobcentre Plus to support those affected by the redundancies.

He said the scale of the job losses had sent "shock waves" across Tynedale in the run-up to Christmas and left many local families "devastated."

RMT regional organiser Micky Thompson said it was "disappointing" that the "heartbreaking" redundancy news was announced shortly before Christmas.

"Our thoughts are with the employees affected at this extremely difficult time," he said.

Although the RMT is not recognised by Essity and has therefore had limited contact with the company, the union has been working with DHL to help mitigate the impact of the redundancies.

The union said it has supported DHL employees with access to in-house financial advice and CV training, and has also been in contact with MP Joe Morris. It added that "DHL has aligned with the statute."

An Essity spokesperson said: "From an Essity perspective, we can confirm that we have exited a specific contract with DHL that relates to a single UK retailer. This is not an unusual event, as most retailer contracts are subject to a competitive tender process every few years.

"The end of the contract meant that, regretfully, Essity closed one production line at our Prudhoe paper mill in January 2026. While this initially placed 21 roles at risk, we were able to offer alternative roles to 20 individuals.

"We can confirm 12 accepted new positions, eight chose either redundancy or early retirement, and only one role could not be redeployed. Full support was provided to everyone affected, and the process has now concluded.

"Later this quarter, we look forward to officially opening our new £30m recycled fibre facility, which further demonstrates our commitment to the long-term future of the Prudhoe Mill."

DHL previously said the restructure was due to changes in customer volumes at the Prudhoe site, adding that it was consulting with affected staff and would make every effort to redeploy employees where possible.

In December, a spokesperson for DHL said: "In response to changes in customer volume at our Prudhoe site, we are undergoing a restructure of our operations.

"We're in consultation with affected colleagues and their representatives and we will make every effort to redeploy as many people as possible to suitable opportunities for them.

"We'd like to thank our colleagues for their understanding during this difficult time, and to emphasise that the decision in no way reflects on the hard work and dedication of the team.”