Engineering giant Renishaw is considering a proposal for a compulsory redundancy programme.
The proposal could result in around 200 redundancies across its UK operations, which is approximately 6 per cent of its total UK employees.
Renishaw’s first quarter trading results that were released in October 2019 clearly highlighted the difficult macroeconomic conditions that the company is facing at this time.
Compared to the same period last year, profits were sharply down from £32.6m to just £4.3m.
A spokesman for Renishaw said: “The firm 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.
“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.
“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 this week, 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.
“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.”