British tech company Dyson Ltd is planning to shed up to 900 jobs within the coming weeks as part of its plan to further reduce costs as it faces continued financial pressures from the economic downturn caused by the coronavirus pandemic.
The announcement of the job cuts was made by the company's chief executive officer, Roland Kruger, during a live video conference this week. Employees were told that drastic measures had to be taken in order to ensure the company's survival amid the continued disruptions caused by the global health and economic crisis.
The video was broadcasted throughout the company's global offices, including in its headquarters in Singapore. The company had moved to the Asian country last year, a shift that caused some controversy at the time.
While the company is technically no longer headquartered in the UK, Kruger stated that most of the jobs that would be affected by the cuts are those at the company's UK facilities. The executive specifically mentioned Dyson's facility in Malmesbury, Wiltshire. Kruger stated that out of the 10,000 employees working outside of the UK, only about 3 percent would be affected by the cost-cutting measure.
The move had understandably garnered a lot of negative responses from the company's UK workers. The resentment was further fueled by the recent reports of the company's founder, James Dyson, officially becoming the country's wealthiest person. One employee, who refused to be identified, stated that there has been a lot of negative talk within the company's staff.
Some employees are questioning how a company that is owned by Britain's richest man would decide to lay off 900 workers just because of a "temporary blip" in its sales numbers. Given James Dyson's newfound status and the massive increase in his wealth over the past months, the company can more than afford to retain its employees, while also providing them with financial support during these trying times, one employee had noted.
The 73-year old inventor, who is best known for inventing the bagless vacuum cleaner, had increased his net worth from $4.58 billion to $20.6 billion last year. Despite the failures of some of his investments, such as his $600 million electric vehicle startup, Dyson still managed to rake in billions of dollars in profit from the international sales of its products.
Dyson has yet to formally release a statement to address the move to reduce his company's workforce. However, the company did explain that apart from the reducing costs, the job cuts are part of a much wider strategy to "evolve" its organization to reflect the changes in the global retail industry.
