Sheffield Forgemasters is reducing its workforce by 95 after its business was impacted due to the COVID-19 pandemic.
The weaker economic climate has reduced product demand for the steel products maker, which is resulting in a workforce reduction by 13pc to 613 employees. The firm primarily services commercial contracts along with contracts for the UK and US defense industries.
David Bond, the company’s chief executive officer acknowledged the difficult decision to cut staff to protect the ongoing entity. He added many highly skilled positions, as well as the 350 employees in the current apprentice or development programs, would not be affected by the layoffs.
In August, Sheffield announced it would deliver the first GE Power Conversion components in early 2021. The rotating stabilizer component is essential in providing electrical flow stability in renewable energy products, a growing market opportunity for Sheffield.
The UK-based, 200-year-old company recorded revenues of £79.3mn ($102mn) in 2019, up from £66.3mn in 2018, and started 2020 with an order book of £162mn for products that will be approximately made over the next two years. Bond noted that given the forward contracts, the firm has financial security through 2022.