Johnstons of Elgin, a prominent textile firm in Scotland, is facing potential job losses as the company undergoes a restructuring process. The Elgin plant, which employs around 750 people, is at risk of losing 60 jobs due to a slowdown in the market. Despite this, the outlet at Eastfield Mills in Hawick will not be affected by the job cuts.
Founded in 1797, Johnstons of Elgin reported sales of £100m last year, showing a 20% increase from the previous year. However, the company has experienced challenges in the luxury textiles market this year due to global economic uncertainty and shifts in consumer behavior.
A spokesperson from the company stated that while they have seen significant growth in recent years, the current market conditions have led to a revision of sales projections for 2024 and 2025. As a result, they will be consulting with the Elgin workforce to restructure the team in line with demand. The expected impact is around 60 full-time equivalent roles out of the total workforce in Elgin.
Despite the challenges, Johnstons of Elgin remains optimistic about the long-term prospects of the luxury market. They are committed to investing in equipment, training, and development to support their customers and grow their own brand as the market improves.
The Unite union has expressed its determination to oppose any compulsory redundancies, emphasizing the importance of protecting the jobs of workers in the face of economic uncertainties.
It is crucial for companies like Johnstons of Elgin to adapt to changing market conditions and make strategic decisions to ensure their sustainability and growth. By addressing the challenges head-on and investing in the future, they can navigate through tough times and emerge stronger in the long run.