Plymouth’s Princess Yachts to cut 260 jobs, employees told

Plymouth-based Princess Yachts has told employees it will cut hundreds of jobs, blaming market conditions and the government’s Budget.

In a letter from chief executive Will Green to employees, seen by the BBC, he said the firm’s hourly paid workforce would be cut by about 260 roles.

Mr Green said the last year had been “the most challenging commercial conditions in the company’s history” and the Budget had “severely impacted” its recovery plan.

The Treasury said its commitment to business was “resolute” and it cited measures that included capping corporation tax at 25%.

In the letter, Mr Green said 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,” he said.

Those affected were told to expect a letter notifying them and providing more details on the process ahead.

A consultation would begin with about 500 employees who were potentially affected, it said.

The main areas affected would include feeder factories, development, fitout, outside crew, quality and other operational support, the letter said.

The letter added: “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.”

Princess Yachts has been contacted for further comment.

A Treasury spokesperson said: “In October we delivered a once in parliament budget to wipe the slate clean and deliver change by investing to repair the NHS and rebuild Britain; all while ensuring working people don’t face higher taxes in their payslips.

“Our commitment to business is resolute – we have capped corporation tax at 25%, confirmed full permanent expensing, and are tackling planning and trade barriers to unlock growth.”