During a global shakeup, Dyson will eliminate up to a third of its UK personnel.
The business invented the bagless vacuum cleaner and claimed the measures would prepare it for “increasingly fierce and competitive global markets.”
After founder Sir James Dyson’s long-standing criticism of UK economy policies, the company transferred its headquarters to Singapore in 2019.
Dyson employs 3,500 UK workers in Wiltshire, Bristol, and London.
CEO Hanno Kirner said the organization must be “entrepreneurial and agile.”
“Decisions which impact close and talented colleagues are always incredibly painful,” he said.
“Those whose roles are at risk of redundancy as a result of the proposals will be supported through the process.”
In 2019, Dyson relocated its headquarters to Singapore to be closer to manufacturing and supply chains. Singapore sells mainly to Asian markets and has an EU free trade agreement.
The company is profitable and makes air purifiers, hair dryers, and other equipment. Research and development spending rose 40% last year.
After its global examination, Dyson announced the decision as a commercial choice, not a political one.
Sir James is very critical of the UK’s economic policy.
He claimed last year that the UK had “woeful policies.” For example, high company tax and would spend more in “modern, forward-looking economies elsewhere” that promote growth and innovation.
Businesses of all kinds, like consumers, are facing growing prices and bills. In April 2023,UK corporations paid 25% corporation tax to the government, up from 19% in the previous year.
In addition to housing the Dyson Institute, which includes 160 undergraduate engineers, Dyson said the UK would “remain a vital center” for R&D.
Although the R&D building remained, one Dyson employee who got notice today told the BBC that “everyone involved in R&D have now exited all Dyson buildings”.
“All in stark contrast to James’ promise that R&D would remain in the UK after the Singapore headquarter move. We believe this is obviously to cut costs by using our South East Asian counterparts who are cheaper to employ,” they claimed.
“Whether this capability will return over the next few weeks remains to be seen.”
Dyson told the BBC the claim was “categorically not correct.”
‘A significant blow’
Danni Hewson, head of financial research at AJ Bell, said. At the same time, the company had made it known its plans were long in the making. There “have been questions about the future of the business in the UK since 2019” when it moved its headquarters overseas.
“News that British appliance manufacturer Dyson is to pare back its UK workforce by a quarter is a significant blow not just to those losing their jobs but also Labour’s push to get the economy growing.
“The decision is an uncomfortable one and begs the question whether Sir James Dyson and his company believe the future must be found elsewhere.”
MP is concerned about Dyson head office transfer to Singapore.
New South Cotswolds Liberal Democrat MP Roz Savage was concerned by the revelation.
She answered, “It’s huge. Malmesbury is a close-knit community and I’m sure if people are in danger of losing their jobs then their pain is going to be felt by the whole community, by the local businesses and the local economy is going to be affected.
“This is potentially very big news and I’m very concerned.”
Richard Clewer, leader of the Wiltshire authority, said the authority will help people affected during “an uncertain time.”
Mr. Clewer, the councilor for economic development, said he was “extremely sorry to hear” the move, adding that many Dyson staff were in Wiltshire.
Massive cost-cutting
According to University of Bath mechanical engineer and political scientist Prof Andrew Graves, the statement did not surprise industry insiders, who “had been warning about this for a long time.”
“Right across the world there is huge competition with the Dyson products and a lot of Dyson products really haven’t been successful of late,” stated.
“They put aside two billion to build an electric car in Hullavington and that was withdrawn fairly quickly when they realised it was too difficult.
“And also some of their latest products haven’t been too great in the market place, they are really fighting on all fronts at the moment.
“This is a huge amount of cost-cutting,” he said.
Prof. Graves said large-scale redundancies would be “devastating” for Malmesbury.
Sir James Dyson is the fifth-richest
In response to the COVID-19 outbreak, the company slashed 600 UK employees and 300 abroad, citing shifting consumer behavior.
Sir James Dyson, fifth on the Sunday Times Rich List with £20.8bn, created Dyson.
The restructuring was reportedly decided before the general election.
Sir James firmly supported Brexit, stating it restored the UK’s “freedom of spirit.”
In January, he contributed £6m to Malmesbury Primary School. He proposed a £100m investment in a central Bristol research and development area.
