Hundreds of jobs could be lost in restructuring plans at a bus manufacturer as the company reports a significant decline in UK demand.
Alexander Dennis Limited (ADL) said it must go through a process of restructuring to cut costs – putting up to 650 jobs at risk.
The Falkirk-based company said its customers have not been making orders due to the impact of coronavirus lockdown measures.
The firm – which is the world’s largest manufacturer of double-deckers – made use of UK Government relief schemes as well as taking steps such as cutting salaries.
Colin Robertson, ADL’s chief executive, said: “A few short months ago we were looking at a record year of sales, reaping the benefits of all our investment in new technology, new products and new markets.
“All of this changed with the impact of Covid-19.
“Since March, we have been in constant dialogue with the UK and Scottish Governments to make them aware of the unprecedented crisis facing our industry.
“We are deeply grateful for the support offered by the UK Government’s job retention scheme and we are heartened by the Prime Minister’s reiteration earlier this month of the pledge he made in February to bring 4,000 new green buses into service.
“We continue to call upon both Governments to act now to prevent further job cuts and preserve the UK’s world-leading bus and coach manufacturing industry.”
A formal consultation is to begin in the coming weeks on the restructuring programme.
The changes at ADL are part of a wider restructuring programme announced by parent company NFI.
It is affecting sister companies in the US and Canada, along with the consolidation of the firm’s spare parts business in North America into NFI Parts.