Dyson, a home appliance company famous for vacuum cleaners and Airwrap, is set to cut about 1,000 jobs in the UK as part of a global restructuring.
On the 9th (local time), Dyson CEO Hanno Kirner stated, "We have grown quickly and, like other companies, we are reviewing global restructuring to prepare for the future," adding, "We are proposing changes to the organization, which may lead to layoffs." The confirmed scale of job cuts in the UK is about 1,000, which accounts for approximately 30% of the total UK workforce (around 3,500 employees).
Dyson made it clear that this reduction is part of a global restructuring. However, it did not disclose the extent of potential job cuts in regions outside the UK. Local media reported that Dyson will conduct reviews on a country-by-country basis. CEO Kirner emphasized, "The pace of innovation and change in the global market is accelerating, and competition is becoming increasingly fierce," adding that entrepreneurial spirit and agility are necessary to respond to this.
Accordingly, it is expected that the newly established Labour government in the UK will inevitably face job impacts. Dyson, based in the UK, had already relocated its headquarters to Singapore in 2019. The announcement of the job cuts coincided with the day Jonathan Reynolds, the UK Business Secretary, met with over 100 business leaders to reveal his priorities.
BBC reported that Dyson seemed aware of the political sensitivity of the announcement, emphasizing that the job cuts are a business decision and a result of a global restructuring review. It is known that Dyson had been considering such restructuring even before former Conservative Prime Minister Rishi Sunak announced an early general election in May. However, the outlet also noted that Sir James Dyson, the company's founder, has been highly critical of the UK’s economic policies.
Danny Hewson, Chief Financial Analyst at investment firm AJ Bell, said, "The news that UK-based home appliance manufacturer Dyson is cutting more than a quarter of its UK workforce is a major blow not only to those losing their jobs but also to the Labour Party’s economic growth agenda," adding, "It raises questions about whether Sir James Dyson and his company believe the future lies elsewhere, not in the UK." Currently, more than half of Dyson’s sales come from the Asian market.
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