One of the town's largest employers has announced plans for significant restructuring, which could lead to 65 jobs being lost.
This move comes in light of ongoing challenging global market conditions that have necessitated operational changes within the organization.
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Back in January this year, 98 jobs were at risk of redunancy in an effort to adapt to shifts in the operational landscape of the company.
Nidec Drives has announced a proposed restructuring that could potentially lead to the reduction of up to 65 jobs.
The town, which is home to Nidec Drives' UK manufacturing and World Headquarters facilities, currently employs 636 individuals in these locations.
Regarding the proposed changes, a company spokesperson stated:
"The proposed change is due to ongoing depressed global market conditions and the resulting challenging business environment, which is expected to extend beyond 2024 and into 2025. To provide a solid platform for growth when markets recover and right size costs to current and predicted market conditions, Nidec Drives is considering a proposal, subject to consultation with affected employees and employee representatives, to restructure staff levels at both the UK manufacturing and World Headquarters facilities based in Newtown."
Despite the potential job losses, there is optimism that some employees may have the opportunity for redeployment within the company as part of the restructuring initiative. Nidec Drives remains dedicated to being a significant employer in the region and maintaining strong partnerships with customers both locally and globally.
Employees impacted by any restructuring decisions will be offered a comprehensive redundancy package that includes outplacement support services.
Nidec Drives has affirmed its commitment to collaborating closely with the Employee Action Group and governmental bodies at local and national levels to ensure that affected individuals receive necessary assistance and support throughout this transition period.
Mayor of Newtown, Cllr Peter Lewington said:
"The potential loss of 65 jobs is extremely bad news for the staff and our town and I am sure will cause much anxiety and concern."
"I sincerely hope the optimism of redeployment can be realised in as many instances as possible and I am pleased to see that Nidec remains dedicated to being a significant employer in our region."
"With the support on offer from Nidec and the possible opportunities on offer from thriving local businesses i hope this sad situation can be resolved swiftly and satisfactorily for all concerned. "
Responding to the news, Montgomeryshire & Glyndwr MP, Steve Witherden said:
“This is disappointing news for Newtown, but I am glad to hear the company is considering redeployment opportunities for some employees. I strongly urge Nidec to offer these alternative roles as geographically close as possible, such as at their Telford site.
“I welcome the company’s commitment to working closely with their Employee Action Group and will be in touch to offer my office’s assistance with affected employees.”
Russell George MS said:
“This is incredibly sad news, and my first thoughts are for all the staff who may be anxious over the news this morning.
‘’I met with Nidec earlier this year when the first round of potential job cuts was announced, and they reaffirmed their commitment to Newtown and on providing staff with redeployment and support. I am encouraged from Nidec’s comments that they remain committed to our region and that staff will be a part of consultation on the new proposals and that some staff will be offered redeployment.
‘’I am aware that other businesses in Montgomeryshire are seeking to expand their operations, so I hope that any staff who are potentially made redundant from Nidec, will be able to take up roles with some of the growing businesses we have in our area.
‘’I hope to raise this difficult news in the Senedd as soon as possible.’’
