Engineering firm to reduce headcount as Covid-19 continues to hit production

More than half-a-dozen jobs are set to go at a North Staffordshire engineering firm as Covid-19 continues to hit production levels.

Stoke-on-Trent-based Olympus Engineering wants to reduce headcount across four departments at its Etruria headquarters after seeing a ‘significant reduction’ in orders and profit on the back of the pandemic.

The company has sent a letter to staff detailing plans to axe seven employees from its labouring team, tool room, Hydraforce stand alone and business development departments.

The move comes just six months after the company axed around 20 staff as a knock-on effect of major customers such as JCB and Bentley Motors placing less orders during the pandemic.

In a staff briefing letter issued to affected employees last week, managing director Jackie Williamson said: “Due to the unprecedented circumstances, we would like to share the following information with you.

“We would like to inform you all on proposed changes within the organisation, which may have an impact an your role at Olympus Engineering.

“As you may be aware, the company has seen a significant reduction in the volume of work and a reduction in profit margin during this year.

“In line with these changes, we have reviewed the structure of the business and as such, are proposing to reduce the number of job roles within the labouring team, tool room, Hydraforce stand alone and business development.

“We are keen to minimise the loss of jobs, with the change in structure we are proposing to reduce the number of employees by seven across these teams.

“Our focus is to ensure that we can continue to operate as a business, however, we do realise that this may be unsettling news to you and please rest assured that we will endeavour to make this process as straight forward and professional as possible.”

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The letter added: “Finally, we would like to express the importance of our service levels being maintained throughout to ensure that we continue to exceed the needs and demands of our customers. Thank you for your continued support and hard work.”

Affected staff have now entered a 30-day consultation over the job losses and will be invited to take part in one-to-one consultation meetings this week.

BusinessLive – West Midlands

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