Princess reduce workforce by 450

Princess to cut up to 450 jobs

By IBI Magazine

British luxury motor yacht builder Princess has announced that up to 450 jobs — a fifth of its workforce — could go at its Plymouth base, following a strategic review aimed at 'strengthening' the company.

Princess is now undergoing a 90-day consultation period, according to a report on the BBC. Voluntary redundancies and reduced working hours will be used to minimise the impact of layoffs at the yard.

The firm currently employs 2,125 people, up from 1,712 people in 2007, and builds two yacht ranges — the Flybridge up to 95ft (29m) and the V-class up to 85ft (26m). A shorter working week was introduced across a number of departments in January.

Managing director Chris Gates told the BBC: "We have concluded that, despite market conditions, Princess has the strength to sustain a workforce of around 1,700, a figure similar to that of 18 months ago but regrettably this will require a reduction of up to 450 employees.

"We are committed to continued investment in the Plymouth area and in our people but must meet the challenges being seen across all industries and match our production capacity to the changing demand."

Plans continue for a multi-million pound investment in facilities to build yachts up to 130ft (40m). The search for a site is underway at present with a final decision due by the end of April.

Princess was established in 1965 and operates in 1,000,000ft2 of facilities.

(6 March 2009)