Princess Yachts Announces Workforce Reduction of Approximately 260 Positions

Princess Yachts, located in Plymouth, has informed its workforce of impending job reductions, attributing the decision to prevailing market conditions and the government’s recent Budget. A letter from Chief Executive Will Green to staff, which the BBC has reviewed, stated that approximately 260 roles within the company’s hourly paid workforce would be eliminated. Mr. Green characterized the past year as having presented “the most challenging commercial conditions in the company’s history.” He further indicated that the Budget had “severely impacted” the company’s recovery strategy, and that implementing efficiencies would support a “more robust business” over the long term. The Treasury, in response, affirmed its “resolute” commitment to businesses, highlighting measures such as the 25% cap on corporation tax. Within the letter, Mr. Green asserted that the Budget had “targeted businesses to generate additional tax revenues.” He added, “To remain on track and achieve our plan, we must make some further adjustments to our business which, despite our efforts to avoid it, unfortunately means making some redundancies.” Individuals impacted by these changes were advised to anticipate a letter containing notification and further details regarding the upcoming process. The letter also indicated that a consultation period would commence with approximately 500 employees who could be affected. Luke Pollard, the Labour Member of Parliament for Plymouth Sutton and Devonport, described the job reductions as “awful news for all those affected.” He stated, “Princess Yachts are one of Plymouth’s most important businesses and ensuring they can continue to operate sustainably is vital.” Pollard further commented, “I’ve spoken to Princess and know that they’re taking steps to support those who are losing their jobs but the timing just before Christmas makes this news even harder.” According to the letter, the primary departments implicated were feeder factories, development, fitout, outside crew, quality, and other operational support functions. The letter also conveyed: “We need to continue to make the business stronger and more agile and these regrettable actions, together with the good work that is happening throughout the business, will underpin a more sustainable future.” Princess Yachts issued a statement on Wednesday, asserting that it had achieved “significant progress” in enhancing operational efficiencies amidst difficult market conditions. The company indicated that a robust order book had enabled it to withstand a considerable portion of the market downturn, but a review of its business operations had “highlighted opportunities to further strengthen resilience.” This strategy would entail “streamlining” processes to “build a more flexible operation arounds its most experienced and skilled people.” It was stated that this would necessitate the redundancy of certain roles, affecting under 10% of the total workforce, with a consultation period currently in progress. Mr. Green commented that making decisions directly impacting employees’ jobs was “always difficult,” but emphasized the company’s responsibility to all staff to maintain a “strong business.” He further added, “I am confident that these adjustments, together with the progress we have made on our turnaround plans this year, will underpin a much more robust business long-term and allow us to concentrate on what we do best – building the highest quality yachts in the market.” A spokesperson for the Treasury stated: “In October we delivered a once in parliament budget to wipe the slate clean and deliver change by investing to repair the NHS and rebuild Britain; all while ensuring working people don’t face higher taxes in their payslips.” The spokesperson continued, “Our commitment to business is resolute – we have capped corporation tax at 25%, confirmed full permanent expensing, and are tackling planning and trade barriers to unlock growth.” Follow BBC Devon on X, Facebook and Instagram. Send your story ideas to spotlight@bbc.co.uk.Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.