Image Credit: Princess Yachts/ Facebook

Around 250 people could lose their jobs at Princess Yachts’ Plymouth shipyard. The company announced in an email to its staff yesterday (Tuesday 3rd) that it intends to make some roles redundant amid what it describes as “challenging market conditions”.

In a company statement provided to SuperyachtNews, the British builder says it has made significant progress in its efforts to enhance operational efficiencies throughout 2024, but not without difficulty.

“[This year] has been an important turnaround year for Princess,” says Will Green, CEO, Princess Yachts. “We have made excellent progress in improving our operational efficiencies and continued to invest in exciting, segment-leading products such as the new S80 and S65, which launched this year and the new F58 and V65 that will debut in 2025. But we have not been immune to the global downturn that has been affecting the industry.”

While the firm’s order book has helped it weather some market turbulence, a recent review of operations has presented company executives with an option to “build a stronger business in anticipation of the market returning to normal.”

This will involve reducing its workforce to build a leaner operation around its most experienced and skilled people, with an increased focus on quality and operational efficiency.

These changes will require making some roles redundant, which will ultimately affect around 250 of its hourly paid staff across several operational areas, just under 10% of its currently 2,700-strong workforce.

The company has faced considerable challenges in recent years too, including sharp rises in costs felt by many shipyards and major disruptions caused by delays in the delivery of engines and other key components. These difficulties contributed to a £61 million loss in revenues of £315 million in 2022, prompting the need for financial assistance.

Private equity firm KPS Capital Partners stepped in and acquired control of Princess Yachts from L Catterton, the LVMH-backed fund that had owned the company since 2008. As part of the acquisition, KPS injected around £54 million in capital to support the builder’s future growth.

Now, the shipyard is entering a period of consultation with union representatives and those individuals directly affected to review the plans and opportunities within the new structure.

“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,” adds Green.

“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.”

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