Industrial controls and automation manufacturer Siebe will begin an accelerated job cutting programme this year.
Allen Yurko, chief executive, announcing pre-tax profits for the year to April up 14.7% to £486.4m, said that up to 4,000 jobs would be axed world-wide over the next two years as part of a £100m restructuring.
This would comprise 2,000 direct job losses and 2,000 relocations. Some 300-400 jobs are expected to go in the UK, where Siebe has manufacturing plants in Cheshire, Plymouth and High Wycombe.
Up to 20 factories will close across Siebe’s global operations. The majority of job cuts will be in the US and continental Europe.
Siebe estimates it will achieve annual savings of at least £60m from the restructuring which is being driven by the global economic climate. This had ‘intensified the group’s focus on costs’.
Sterling’s strength cost the group £344m in sales and £38.4m in pre-tax profits, taking its biggest toll in the Industrial Equipment Division.
Its performance did not meet board expectations, with overall sales down 3.3% from the prior year to £522m and operating profit down almost 24% to £46.4m.
Group turnover rose 22.1% to £3.6bn. Of this, just 9.2% came from UK business, with the US and Continental Europe accounting for 40.2% and 28.3% respectively.