Bentley has written letters to all 4,200 of its employees offering voluntary redundancy, with its stated aim being a headcount reduction of around 1,000 employees. Decreasing the size of its workforce by nearly a quarter is obviously linked to the losses sustained during the coronavirus pandemic, but Bentley says that it’s also related to ongoing cost-cutting measures designed to make the business financially stronger and – telling of the challenges that lie ahead – “recession proof”.
The announcement comes just one month after Bentley’s Crewe-based factory re-opened its doors and began operating again with around 50 per cent of its usual staff. The brand’s ‘new normal’ operation was seen as a promising sign that it would return to full health following lockdown, but it seems not even the release of contracted staff, pay freezes and around 66 per cent of employees being furloughed could counter the lost revenue. The company has ruled that “an urgent reduction in the workforce” is now an imperative.
“It is vital, even more so now with what is going on around us that we look to the long-term future of Bentley,” said CEO, Adrian Hallmark. “This means fundamentally redefining our company so we respond immediately to protect the business through this crisis, continue to lead our sector by reinventing the company and look to establish ourselves as the leader in sustainable luxury mobility for the next 100 years.”
He added that the voluntary release programme “at least allows the colleagues to make the personal choice and leave us with the most appealing and supportive offer possible within the circumstances”. The company said it can’t confirm whether more than the anticipated 1,000 job cuts will be needed longer term to ensure it reaches a path to profitability – something first laid out in its Beyond100 business initiative, which also includes the costly development and launch of new electrified models, starting with the Bentayga Hybrid.
Prior to the pandemic, things looked more encouraging, with the new Continental GT helping to push sales up by 54 per cent in 2019 compared to 2018. The Bentayga, too, saw demand growth of 18 per cent, with Hallmark declaring at the start of 2020 that it had been “an extraordinary year for Bentley for many reasons”. It rather echoes McLaren’s circumstances, which has seen a similarly drastic switch in business from optimism to survival tactics. Expect more brands from the UK – and the world over – to announce cost cutting in the coming months.
That being said, Bentley’s pre-coronavirus efforts to promote efficiency seemed to be having an effect, with the brand claiming to have saved £270 million in 2019 before then announcing a record performance in Q1 of 2020. It intended to continue these efforts with “organic the planned solution” for the continued improvements. But nobody could have foreseen what was to follow in the spring. Here’s hoping that the new measures bring Bentley back onto its earlier path.
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