- Bentley has decided to downsize by 1000 employees. This decision was taken by the upon making careful future financial evaluations.
- The company has already let go of existing contractors, frozen pay, and placed around 66% of its personnel on furlough since the beginning of the lock down.
The British Automobile manufacturer, Bentley has announced that it has decided to cut up to one-fourth of its workforce under a “voluntary release program”. The luxury car manufacturer released in a statement that this decision has been taken as a result of financial constraints for the company in the short-term and that with deep regret it has to cut up to 1000 jobs in the organization.
Bentley also said that the pandemic has affected the organic growth of the company and derailed plans for the near future. Back in 2018, the company started a program to drive productivity improvements with efficient developments in financial flexibility but the company now faces a restructuring challenge even after the program led to profits in the first quarter.
Bentley had already decided to cut down on unnecessary spending without impacting future product plans. The company let go of existing contractors, stopped recruitment, froze pay, and placed about 66% of its employees at peak on furlough. To protect future financial interests the company also sped up plans to comprehensively analyze their cost and investment structure aimed at reducing future spending on employees and management teams. As a result, to keep the financial interests of the company safe, the decision to urgently reduce the workforce and let go of employees had to be made.
Experts have called this decision made by Bentley as another heavy blow for the automotive industry amidst the layoffs due to the COVID-19 crisis. The National officer Steve Bush said that Bentley is known around the world for the quality of vehicles it manufactures with the help of great expertise of a highly dedicated and intelligent workforce. He also called the layoffs as heartbreaking and said that they are deeply committed to supporting members during this time to mitigate jobs lost due to the pandemic.