Up to 65 mill jobs face axe at Johnstons of Elgin
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UP TO 65 jobs could go at an Elgin mill due to the impact of Covid-19 on its markets.
Johnstons of Elgin has announced a restructure of the business. It will begin a collective consultation with staff this month.
The company says it will do its utmost to minimise the number of compulsory redundancies, and that up to 65 roles at the Elgin mill will be affected.
There are also expected to be job losses in the company's UK retail operations and at its other large manufacturing site in Hawick.
The process is planned to conclude in October.
Simon Cotton, chief executive of Johnstons of Elgin, said: "While Johnstons of Elgin has strong long-term prospects, to meet the significant short and medium-term impact of the Covid-19 pandemic we are restructuring the business.
"This reflects the new realities we are facing, with stores in most of our markets around the world having been closed for several months and now faced with reducing high stock levels.
"Our community in Elgin is at the heart of our business as well as the incredible skills and capabilities of our team. Therefore, this is not a decision we have taken lightly, but out of necessity to protect the long-term health of the business.
"We will do everything within our power to mitigate the number of redundancies – but we know that this will be an unsettling time for our workforce and our intention is to manage this process quickly and fairly.
"Our priority will be to maintain our exceptional skills and capabilities so that we can build on these in the future as the situation starts to improve again."
Moray MP Douglas Ross said it was an extremely worrying time for Johnstons of Elgin workers and their families.
He said: "The coronavirus crisis has negatively impacted so many sections of our economy – and now the impact is being felt here too.
"I will be doing my utmost as local MP to ensure job losses are kept to a minimum and that those who do leave can be assisted in finding new opportunities.
"In times like these it’s absolutely essential for both the Scottish and UK governments to work together to help companies like this.
"Johnstons is an important local employer that has a proud history here in Moray – we have to ensure it can recover and re-emerge from the pandemic stronger than ever."
Moray SNP MSP Richard Lochhead said: "Johnstons is one of Moray’s biggest employers and most iconic brands, and there’s no doubt these job losses will have an impact on the local economy.
"This will be an incredibly anxious and difficult time for workers affected, and it is essential that they have support they need from local agencies to help them secure future employment.
"Coronavirus has created huge challenges for businesses and for Johnstons, which is a long-standing export-focused company. This will have been compounded both by Brexit and the US tariffs that have been imposed on cashmere products."
Family-run Johnstons, a leading manufacturer and retailer of cashmere and fine woollens, employs around 1,000 people.
Founded in 1797, the company runs two mills alongside retail visitor centres in Scotland – in Elgin and Hawick. The company also has a shop in St Andrews, and flagship stores in London and Edinburgh.
