UK-based scampi producer Whitby Seafoods is meeting with staff about the possible loss of up to 40 jobs at its production site in Whitby, North Yorkshire, it announced Tuesday.

The company said after a period of increasing costs across its operations, including inflation in dockside prices, combined with a reduction in sales volume, it has to consider ways to cut costs.

This means a number of jobs are at risk in the company’s Whitby factory and office, it said.

"Our excellent and hard working colleagues are the backbone of our business, and we are sad that the challenging external environment has left us with no choice other than to take this step," said Whitby Seafoods Managing Director Daniel Whittle.