Yacht firm to shed up to 450 jobs

Princess Yachts is looking at shedding up to 450 jobs

Up to 450 jobs are to go at Plymouth-based luxury motor boat builder, Princess Yachts.

The announcement follows a review aimed at "strengthening" the company in the current economic climate and "creating the right platform" for future growth.

Princess Yachts said every opportunity would be taken to minimise the effect through voluntary redundancies and reduced working hours.

A 90-day consultation period with staff and unions is now under way.

Princess Yachts International started as Marine Projects in Newport Street, Plymouth, making 20ft (6m) day boats.

We are committed to continued investment in the Plymouth area and in our people

Chris Gates, Princess Yachts

It now sells a range of 80 boats, topped by 95ft (28m) luxury cruisers, which cost in the region of �4.1m and currently employs 2,125 people.

In January, the firm introduced a 10% reduction in its working week among its staff in a bid to cut costs.

Chris Gates, Princess Yachts' managing director, said a review of the whole business had been carried out to determine how to secure its future.

"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," he said.

"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."

New investment

Dave Springbett, from Unite union, said he was "disappointed" by the announcement.

"[But we] still hope that, long-term, the firm can still remain a significant employer in the area, particularly if it is allowed to expand into under-used dockland," he said.

A key initiative, according to the firm, will be a multi-million pound investment in new facilities with skills and training for the production of larger craft including a new 40m (130ft) flagship yacht.

A search for an appropriate local site is under way with a view to finalising a decision by the end of April.