Princess and Riviera farewell staff
by Media Services on 11 Mar 2009
The Princess 50 - “A phenomenal example of just how far boat design has come." Princess Yachts .
Just as Princess Yachts in the UK enters discussions over the lay off of 450 staff – nearly a fifth of its workforce – news is that Riviera Boats has also done some shedding at its Coomera operations on the Gold Coast.
40 staff were laid off, part of the117 redundancies announced in January. Only 625 staff and contractors remain, down from 1200 employees in mid-2008.
In a statement, the company said there were no more redundancies planned at this stage.
In the UK, the Plymouth-based Princess has announced that a recent review of the business has concluded the number of employees is unsustainable in the current financial climate.
Discussions are now under way with union and staff representatives and the company says every effort will be taken to minimise the effect through voluntary redundancies and reduced working hours.
“We have now conducted a review of the whole business to determine both the level we can stabilise and also where we can best invest for future growth,” said MD Chris Gates. “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 the company is committed to continued investment in Plymouth, but must meet the challenges currently being faced by industry.
The announcement follows on from some staff in production roles having their hours cut in January.
The boatbuilder has also announced plans for a multi-million pound investment in new facilities with skills and training for the production of larger craft, including a new 130ft flagship.
The company says it's searching for an appropriate Plymouth site with a view to finalising a decision by the end of April.
The company, established in 1965, currently employs 2,125 people and sells in 65 countries. Last year the yacht company’s parent firm, Renwick Group, was sold to L Capital 2 FCPR, an investment group sponsored by LVMH — Moët Hennessy Louis Vuitton and Groupe Arnault — in what was believed to be a £200m deal.
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