Princess Yachts lays off 250 staff amid ‘market challenges’
British boatbuilder Princess Yachts has confirmed it plans to cut approximately 250 jobs at its Plymouth shipyard, citing “challenging market conditions” and a need to streamline its operations.
The luxury yacht manufacturer, which currently employs about 2,700 people, is entering a period of consultation with union representatives and affected employees. The redundancies, representing just under 10 per cent of the workforce, will primarily impact hourly-paid roles across various operational areas.
In a statement shared with MIN, the firm says this will involve “streamlining some of its processes to build a more flexible operation around its most experienced and skilled people” with an “increased focus on quality and operational efficiency”.
This follows a challenging financial period, with Princess Yachts reporting a £69m pre-tax loss in 2022.
Princess Yachts currently employs around 2,700 people.
In a statement shared with staff and media, CEO Will Green says that 2024 has been an “important turnaround year” for the company, with significant progress in improving efficiencies and launching new products.
“We have not been immune to the global downturn that has been affecting the industry,” says Green. “Making any decisions that directly affect people’s jobs is always difficult, but we have a responsibility to all staff to ensure we have a strong business. I am confident that these adjustments, together with the progress we have made on our turnaround plans this year, will underpin a much more robust business long-term and allow us to concentrate on what we do best – building the highest quality yachts in the market.”
Princess Yachts attributed some of its financial struggles to rising costs, supply chain disruptions, and delays in the delivery of key components. The company has also faced pressures stemming from government policies, including tax measures that Green described as having “severely impacted” its recovery plan.
Nevertheless, a strong order book and investment from private equity firm KPS Capital Partners, which acquired the business in March 2023, have supported its operations and underpin future growth plans. KPS injected around £54m into the company, enabling investments in its South Yard production facility and other areas.
The redundancies come after a smaller round of layoffs earlier this year, which affected around 40 office-based roles.
The company says it remains focused on launching new models, such as the S80 and S65 introduced in 2024, and the F58 and V65 scheduled for 2025. Green argues that these measures will help build a “stronger business in anticipation of the market returning to normal”.
Speaking to the BBC, Plymouth MP Luke Pollard described the job cuts as “awful news for all those affected” and emphasised the importance of Princess Yachts to the local economy. “Ensuring they can continue to operate sustainably is vital,” he said, adding that the timing of the redundancies, just before Christmas, made the news even harder for employees.
In its statement, Princess Yachts reiterated its commitment to supporting employees through the consultation process and said that the layoffs, while “unfortunate”, are necessary for the company’s long-term sustainability and success.
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