Renishaw axes almost 600 jobs as global Covid shutdowns add to company’s woes
◆ Engineering firm Renishaw has axed almost 600 jobs after a collapse in profits as the struggling firm’s woes were worsened by coronavirus, writes Alan Tovey.
The cuts – which equal 10pc of the company’s workforce – came after demand for its measuring and calibration equipment fell in the Far East over autumn.
Global Covid shutdowns then piled on further pressure.
Annual profits crashed 97pc to £3.2m in the year to June, with revenues down 11pc at £510m. The FTSE 250 company had £120m of cash available, but has cancelled its interim and final dividends to bolster reserves.
The profit fall was partly driven by restructuring costs as 578 workers were laid off, taking the headcount down to 4,463.
Renishaw’s largest arm – the metrology division – was hit hard by tensions between the US and China, which pushed down demand for machine tools.
Shares fell more than 10pc to £47.48.