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Gloucestershire Business News

Hundreds of jobs could go at major engineering firm

A programme of 200 compulsory redundancies is being considered by one of Gloucestershire's biggest employers.

Global engineering technologies company, Renishaw, said if it went ahead the programme would be for its UK operations (with 200 representing approximately six per cent of its total UK employees).

The Wotton-under-Edge headquartered firm's first quarter trading results released in October 2019 highlighted the "difficult macroeconomic conditions" the company was facing at this time.

Compared to the same period last year, profits were sharply down from £32.6m to just £4.3m.

Renishaw said it had 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.

The Stone site in Staffordshire involved 120 staff entering into consultation back in September and in November it was revealed 22 staff at its manufacturing operations at its Woodchester site and Miskin site in South Wales, had been made redundant.

"Having taken account of the sales performance for the first-half of its financial year which ended December 2019 and forecast sales for the remainder of this financial year, the Renishaw board has decided that further cost reductions, beyond those already achieved, are required in order to meet its business objectives," said the firm in a statement released this afternoon (January 8).

"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 (Jan 8), company representatives 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."

He added: "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."

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