In a letter to employees, CEO Will Green described the past year as presenting "the most challenging commercial conditions in the company's history." He noted that the UK government's budget had "severely impacted" the company's recovery plan, necessitating these workforce reductions to maintain the company's financial health.
The company has initiated a consultation process with approximately 500 employees potentially affected by this decision. The main areas impacted include feeder factories, development, fitout, outside crew, quality, and other operational support roles.
This development follows a series of financial challenges for Princess Yachts. In 2022, the company reported a £61 million loss on revenues of £315 million, attributed to supply chain disruptions and rising costs.
Earlier this year, Princess Yachts announced plans to break even financially in 2024, signaling optimism about the company’s recovery following a series of financial setbacks. The projection came on the heels of a significant capital injection by KPS Capital Partners, which acquired the company and provided much-needed funding. Despite these efforts, challenging global market conditions and rising operational costs have placed additional pressure on the business, leading to the necessity of workforce reductions.
Princess Yachts asserts that these adjustments, though challenging, are necessary to ensure the long-term sustainability of the business and to continue delivering high-quality yachts to its customers.
Princess Yachts remains a significant employer locally in Plymouth, with a workforce of approximately 2,700 across five manufacturing plants. The company emphasizes that these workforce reductions are part of a broader strategy to stabilize operations, build a more resilient and agile organization, and secure long-term sustainability.
The Treasury has responded to the company's concerns, stating that its commitment to business remains "resolute," highlighting measures such as capping corporation tax at 25%. However, critics argue that saving tax on profits does little to help businesses retain or create jobs during challenging times, and Princess Yachts' workforce reductions serve as a clear example of this.
Princess Yachts asserts that these adjustments, though challenging, are necessary to ensure the long-term sustainability of the business and to continue delivering high-quality yachts to its customers.
New Models Signal a Bright Future on the Road to Recovery
Over the past two years, Princess Yachts has introduced several impressive new models, showcasing its commitment to innovation and luxury. The Princess F58, set to debut at boot Düsseldorf 2025, offers a perfect blend of sleek design and spacious living areas, positioned between the YachtBuyer tested F55 and F65. The Princess Y95 and Y80 have expanded the Y Class range, emphasizing elegance, performance, and generous living spaces. Additionally, we also tested and reviewed the S72 and the brand new S80 which have both brought fresh energy to the sporty S Class, combining high performance with luxurious comfort. These new launches highlight Princess’s ability to cater to a wide range of customer preferences, maintaining its reputation for excellence and positioning the brand for future success.
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