Cheerios-owner Cereal Partners UK & Ireland has revealed it is to cut 300 jobs and potentially shut a factory as it faces waning consumer demand.

The cereal maker, which has a portfolio that includes Shreddies, Cookie Crisp and Nesquik, said it was mulling the decision to close down a major site in Merseyside, shifting production of breakfast brands to a factory in Staverton, Wiltshire, reported The Telegraph.

The decision to shut the factory is expected to see up to 314 jobs cut; however, the business said it intended to invest £74m in expanding the Wiltshire factory, creating 60 new jobs.

It added that it would also stop producing own-label cereals for supermarkets. The company blamed the decision on a decline in consumer demand for breakfast options.

A spokesperson said the move was due to “significant decline owing to the changing habits of UK and Irish consumers and greater competition from alternative breakfast options”.

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“CPUK&I regrets the potential impact on employees and the immediate priority is to work together to review the proposals while supporting people through this process with care and sensitivity.”

It added that it was open to “alternative solutions”, such as a sale of the factory, or floating its supermarket own-brand business and looking for a potential buyer.

However the news was met with criticism by trade unions, with the GMB calling the fate of the factory’s staff “unacceptable”.

GMB regional organiser Matt Denton said: “For three decades, CPUK has been at the heart of this community, providing good jobs and supporting countless businesses. Three hundred skilled workers facing an uncertain future is simply unacceptable.

“We demand urgent talks with management and call on the company to engage with us to make sure workers’ voices are heard, and livelihoods are prioritised.”

The cereal maker’s announcement follows a fall in sales over recent years. According to NIQ data, last year, the volume of sales of Shreddies slumped by 15.8pc last year, while Cheerios experienced a 4.1% fall.