DOZENS of jobs are set to be lost at a Scottish firm following a slump in sales.
Johnstons of Elgin has begun a process which will result in around 60 jobs being made redundant in Moray.
Employees have been told that around 8% of the 750 members of staff at the textile business will be laid-off.
A spokesperson for the company said: “In results to be filed later this month, Johnstons of Elgin will disclose sales for the year ending December 2023 of £100 million, up 20% on the prior year.
“We have seen strong growth in each of the last three years in line with the overall strength of the luxury market following the pandemic.
“However, in 2024, the market has slowed considerably, due to global economic uncertainty and changes in consumer behaviour.
“We now expect sales in 2024 to be lower than last year and have had also to revise downward our future projections for 2025.
“Unfortunately, this means that we will have to consult with our workforce in Elgin to restructure our team in line with current and expected future demand.
“We expect 60 full-time equivalent roles to be affected from a total workforce of around 750 at this location.”
The spokesperson added that there are no plans for redundancies at the Hawick Mill site in the Scottish Borders.
Unite the Union is involved and has promised to “fight tooth and nail to avoid compulsory redundancies” with the firm set to meet with the union next week.
Marc Jackson, Unite’s industrial officer, said: “Johnstons of Elgin has informed Unite of the potential for redundancies at the Elgin site.
“We are actively engaging with our members and in discussions with the company to minimise any impact.
“Unite has made it crystal clear to Johnstons of Elgin that we will fight tooth and nail to avoid any compulsory redundancies.
“We believe other options have to be on the table, including voluntary redundancies. Unite will be formally meeting with Johnstons next week in order to advance these objectives in the interests of our membership.”
Johnstons of Elgin was founded by Alexander Johnston in 1797.
In a letter to staff seen by The Northern Scot, Johnstons chief executive Chris Gaffney wrote that there is “not enough work” to maintain the current staffing levels.
The aim is to inform all staff involved by the end of October, as he said he understands it will be an “unsettling time”.
“We will do all we can to support those that leave the company and will work with local service providers to identify alternative employment or training opportunities.”
MSP for Moray Richard Lochhead (above) commented: "Johnstons is a large employer locally with over 750 staff at the Elgin Mill and plans to reduce the workforce will undoubtedly be causing serious concern amongst local employees, particularly given the challenging trading conditions right now across the UK and internationally.
"I do hope Johnstons is able to keep any reduction in headcount to a minimum."
