Dyson has cut about 1,000 jobs, which is more than one quarter of the workforce.
People familiar with the situation say that the staff at the vacuum cleaner manufacturer and air filter maker were informed of the redundancies on Tuesday morning. The move is part of an overall plan to reduce the 15,000 employees in the company worldwide.
The job cuts have been a major blow to the UK. They came on the same day as Jonathan Reynolds, the new secretary for state of business, called more than 100 leaders from the business world to discuss his priorities.
Dyson’s largest market in Asia is Asia. The business competes with local rivals who often produce similar products soon after the ones manufactured by Dyson.
“Dyson operates on increasingly competitive and fierce global markets where the pace of change and innovation is only increasing. Hanno Kirner is the chief executive. “We know that we must always be entrepreneurial and flexible.”
He added that “cutting jobs is always incredibly painful”. “We’ve grown rapidly and, like any company, we review our global structure from time-to-time to ensure we’re prepared for the future”, he said.
According to those who are familiar with the process, the review that led up to the redundancies began before the UK general elections were called in May. The redundancies have nothing to do with the UK election.
About 3,500 Dyson employees are located in the UK. The company has not revealed how many jobs will be cut globally, as reviews are conducted on a country-by-country basis.
The company has expanded beyond its original vacuum cleaner specialism to include products such as hair dryers and fans. The company’s engineers are working on dozens projects, some of which will never be revealed.
Dyson has abandoned in 2019 its push to enter the production of electric vehicles. However, it continues to develop batteries for its cordless product range.
The UK cuts will affect all departments, including the management levels. The UK will remain the main hub for product development and research, even though some of it is already done in Singapore.
The job cuts could further damage the reputation of the founder as one of Britain’s most successful entrepreneurs and inventors.
The billionaire has lost a libel case against the Daily Mirror’s publisher over an article which branded him a “hypocrite”, for having supported Brexit, but then moved his company headquarters to Singapore.
The company stated at the time that Brexit wasn’t a factor in the decision, and that it was made for commercial reasons. It noted that the majority of its customers, as well as all its manufacturing facilities, were located in Asia.
Sir James Dyson stated in December that both the Conservatives and Labour Party leaders were not “going for the growth”, and that “wealth creation and growth” have become “dirty terms”.
The new Prime Minister, Sir Keir starmer and the chancellor Rachel Reeves placed “growth” as the core of their UK ambitions. However, they have been accused by opponents who have not ceased to say that tax increases will be necessary.
Jeremy Hunt, Dyson’s founder, and former Conservative chancellor Jeremy Hunt had a heated meeting in March at No 11 Downing Street that was described as “fierce” by observers. One person who was present at the meeting said that Hunt asked Dyson: “If you feel you can do a better work, why not run for election?”
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