Princess Yachts is set to cut its hourly paid workforce by around 260 jobs according to reports.
A letter from chief executive Will Green seen by the BBC is reported to state that the last year had been ‘the most challenging commercial conditions in the company’s history’.
The Budget announced in October is said to have severely impacted the yacht builder’s recovery plan and that the efficiences being made would underpin a more robust business in the long-term.
The BBC reports that in the letter, Will Green states the Budget had targeted businesses to generate additional tax revenues.
“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,” stated the letter.
A consultation is due to start with around 500 employees who could be affected.
These include employees working in feeder factories, development, fitout, outside crew, quality and other operational support.
Turnaround plans
“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,” continued the letter.
Will Green also stated that making any decisions that directly affect people’s jobs is always difficult but there is a responsibility to everyone to ensure a strong business.
“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,” the letter added.
The reduction in workers is said to affect less than 10% of the current workforce.
In May 2024, it was announced that around 90 staff – around 3% of its workforce – at Princess Yachts could lose their jobs as the boatbuilder restructured folloing an extensive business review.
At the time, the yacht maker cited supply issues and stated that these meant it couldn’t build and sell as many boats as it would like.
The boatbuilder was taken over by American based KPS Capital Partners in 2023.
Princess Yachts has previously said it has orders stretching into 2026.
Princess is due to display a six-yacht line up at Boot Düsseldorf 2025 including the world premiere of the F58.
