Luxury Yacht Builder Princess Yachts Faces Up to 40 Job Cuts Amid Economic Pressures

Princess Yachts blamed economic and market conditions for a drop in wholesale orders [Princess Yachts Limited]

Job Cuts at Luxury Boat Builder

Up to 40 jobs could be at risk at luxury boat builder Princess Yachts following lower than expected wholesale orders. The Plymouth, Devon-based company has announced it's entering a consultation process that may lead to a "small number of redundancies."

Union Confirms Managerial Positions Affected

Trade union Unite has confirmed that up to 40 jobs, including managerial positions, are at risk according to the Local Democracy Reporting Service. This comes after the company already cut 240 jobs in its production department over the past year.

Economic Challenges Driving Workforce Reductions

Princess Yachts cited economic and market conditions as the primary reason for the drop in orders, stating that despite a rise in retail sales this year, the company has seen "a softening in forward orders from its global distributor network."

"This reflects wider economic and market conditions that continue to influence discretionary spending and business confidence," the company explained. "In response, we are taking prudent steps to align our operations with current and projected demand."

Impact on Workforce

The potential cuts would represent less than 2% of its workforce of 2,889 employees and would primarily affect salaried and management positions. The company emphasized that the decision "had not been taken lightly" and is part of efforts to ensure the company "remains strong, sustainable and resilient for the long-term future."

Financial Context

The company's financial performance has been mixed in recent years. Princess Yachts made a £23 million loss in 2023 but returned to profitability with a £4.9 million profit last year.

Union Response and Future Outlook

Mark Richards from trade union Unite noted that the announcement was "not a surprise" as the company needs to adjust its boatbuilding programme for 2026 and is "aligning the costs." He expressed hope that some affected staff might be retained and return to the shop floor, adding "We are trying to reduce the number, we think there will be about 40 affected."