The Nimbus and Princess Yachts groups have announced radical measures to cope with the difficult economic climate. These decisions, which involve plant closures and job cuts, reflect the turbulence of a market marked by falling demand and cash-flow problems.
Nimbus closes Kuopio plant
The Nimbus Group has confirmed that its Kuopio plant, which specializes in small units, will be phased out in 2025. This decision will result in the dismissal of 108 employees, mostly production technicians. Further job cuts are expected at the Luoto plant. This decision is in line with the Group's cost-cutting strategy, as sales fell by 20% in the third quarter of 2024. With a provision of SEK 55 million earmarked for restructuring, Nimbus aims to rationalize its product portfolio to adapt to market trends.
Princess Yachts in Plymouth cuts 10% of payroll
Princess Yachts, the British luxury yacht icon, is planning to cut 250 jobs at its Plymouth shipyard. These redundancies, representing almost 10% of its workforce, will mainly affect operational positions. This decision is the result of difficult market conditions and a desire to optimize production processes. Despite a loss of £69 million by 2022, Princess Yachts can count on the investment of KPS Capital Partners to finance projects such as the modernization of the South Yard factory. These initiatives testify to an effort to redefine strategic priorities, as the British manufacturer prepares to release F58 and V65 scheduled for 2025.
Structural causes amplified by economic conditions
Falling demand, combined with high production costs, seems to be the main factor behind these closures. In the case of Nimbus, excessive capital tied up in a context of weak demand led to a drain on cash flow. Princess Yachts, despite a solid order book, was not spared by economic pressure. These situations illustrate the limits of rapid growth in volatile markets.
