Global engineering technology company Renishaw has today (Wednesday) revealed a proposal for 200 job cuts after seeing profits plummet from £32.6m to just £4.3m.
The firm is consulting on a compulsory redundancy programme which could see approximately 6% of its UK workforce facing the axe.
The news comes after Renishaw’s first quarter trading results, released in October 2019, clearly highlighted the difficult macroeconomic conditions that the company is facing at this time.
The company has already undertaken a wide range of measures to improve productivity and reduce its cost base, including the closure of its Staffordshire site, reductions in discretionary spend and redundancies within its UK manufacturing operations.
However, having taken account of the sales performance for the first half of its financial year – up to the end of December – and forecast sales for the remainder of this financial year, the Renishaw Board has decided further cost reductions, beyond those already achieved, are required in order to meet its business objectives.
As payroll is the company’s highest cost contributor, the board has ‘regretfully’ decided that it will be necessary to consider further UK compulsory redundancies.
Therefore today, company representatives have met with the Works Forums which represent its UK employees, to discuss a possible redundancy programme.
Chief Executive William Lee said: “We appreciate that this news will be very disappointing and concerning for our UK colleagues. I would like to thank them for their continued support for the business during this challenging period.”
“We remain confident in the long-term prospects for Renishaw and committed to the company’s strategy of delivering growth through the development and introduction of innovative and patented products.”
Renishaw currently operates from five offices in Gloucestershire, plus premises in South Wales, Exeter, Castle Donington, York, Staffordshire and Edinburgh.