Up to 650 jobs could be are at risk as falling demand hits major Scottish bus firm Alexander Dennis (ADL).
The Falkirk based manufacturer has announced a major restructuring programme after a significant decline in UK demand for new buses and coaches.
The firm, a subsidiary of NFI Group, said following the impact of Covid-19 restrictions, which have seen low passenger numbers and social distancing, UK customers are not in a position to place orders for new vehicles.
The firm has utilised the UK Government’s Job Retention Scheme as well as implementing salary reductions and reduced working hours for non-furloughed staff.
It has also introduced stringent cost saving measures across the business.
However, the moves have been insufficient and the firm will open a formal consultation in the coming weeks on the restructuring proposals, which places up to 650 jobs at risk at all of the Alexander Dennis facilities across the UK.
Colin Robertson, who is transitioning from his role as ADL’s chief executive to join NFI’s board as vice chair, said: “A few short months ago, we were looking at a record year of sales, reaping the benefits of all our investment in new technology, new products and new markets.
“All of this changed with the impact of Covid-19.
“Since March, we have been in constant dialogue with the UK and Scottish Governments to make them aware of the unprecedented crisis facing our industry.
“We are deeply grateful for the support offered by the UK Government’s Job Retention Scheme, and we are heartened by the prime minister’s reiteration earlier this month of the pledge he made in February to bring 4,000 new green buses into service.
“We continue to call upon both Governments to act now to prevent further job cuts and preserve the UK’s world-leading bus and coach manufacturing industry.”
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