Global engineering technologies company Renishaw, which has its headquarters in Wootton-under-Edge, South Gloucestershire is considering compulsory redundancies that could result in around 200 redundancies across its UK operations (approximately six per cent of total UK employees).
Renishaw’s first quarter trading results that were released in October 2019 highlighted the difficult macroeconomic conditions that the company is facing. Compared to the same period last year, profits were sharply down from £32.6 million to just £4.3 million.
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.
But the Renishaw Board has decided that 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 said it has “regretfully decided that it will be necessary to consider further UK compulsory redundancies”.
Representatives from the company have now met with the Works Forums which represent its UK employees, to discuss a possible redundancy programme.
William Lee, Renishaw’s Chief Executive, 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.”
This is a tough decision for a company which is well known and respected for its investment in staff. The last time the company had to undertake significant redundancies was in 2009, after the global economic crash, when it was forced to cut around 500 jobs.