Dyson, the renowned consumer goods company, is reportedly considering reducing its UK workforce by one-third over the next quarter as part of a global restructuring plan.
With 3,500 employees in the UK, Dyson has offices in London, Wiltshire, and Bristol, according to a report by BBC. The company, famous for inventing the bag-less vacuum cleaner, stated that these proposals are intended to ensure its readiness for the future in an "increasingly fierce and competitive global market."
Hanno Kirner, CEO of the company said, “decisions which impact close and talented colleagues are always incredibly painful."
"Those whose roles are at risk of redundancy as a result of the proposals will be supported through the process," he added.
Advertisement
In 2019, Dyson relocated its headquarters to Singapore to be nearer to its manufacturing facilities and supply chains. With Asian markets representing over half of its sales, the move also leveraged Singapore's free trade agreement with the EU (European Union).
However, it is worth noting that the company continues to remain largely profitable. Last year, the company boosted its research and development spending by 40 per cent.
While the company has clarified that this decision is purely business-related and not political, the comments of Dyson's founder gives a different angle to the recent development. James Dyson has long been a strong critic when it comes to UK's economic policies.
Advertisement
He has been quite vocal about his dissatisfaction with the UK's economic outlook. Last year, he described the UK's policies as "woeful," citing high corporation tax, and expressed his intention to invest more in "modern, forward-looking economies" that prioritise growth and innovation.
Dyson joins the long trail of companies that have announced layoffs this year. Nearly every sector has taken a sharp hit owing to job cuts.
