Building products manufacturer Marshalls has announced 250 job cuts and the closure of its factory in Carluke
The job cuts were confirmed by Marshalls in a trading update released today (31st July).
The group has also warned that performance will be weaker in the second half of the year, below its previous expectations.
The Marshalls job cuts come following the 150 redundancies announced at the end of 2022.
The group say that these actions expect to save the company approximately £9m annually.
The statement said that the fall in performance and consequent job cuts were down to high levels of inflation, increasing interest rates, and weak customer confidence.
At the end of June, the company’s net debt was £185m compared to £208m the previous year.
Commenting on the update, Marshalls said: “Whilst previously anticipating a recovery in market conditions in the second half of the year, the Board is now of the view that an improvement in the second half performance is unlikely given the macro-economic backdrop.
“In addition, the Board has chosen to reduce production volumes with a negative impact on operational efficiency in order to manage working capital.
“Taking these factors together, and in the absence of a recovery in demand in the Group’s end markets, the Board believes that the result in the second half will be markedly weaker than the first half, and consequently expects to deliver a result for the full year that is lower than its previous expectations.”
