º£½ÇÊÓƵ boatbuilder Princess Yachts has warned over more potential job losses, including management roles, as wholesale boat orders decline.
The Plymouth-headquartered firm confirmed it was "regrettably entering a consultation process that may result in a small number of redundancies". It is understood around 40 positions are at risk.
Princess Yachts said implementing the measures now would ensure the business "remains strong, sustainable, and resilient for the long-term future", whilst acknowledging the decision had not been taken lightly.
The manufacturer had recently experienced weakening in advance orders from its worldwide distributor network, despite a positive increase in retail sales this year, it said.
"This reflects wider economic and market conditions that continue to influence discretionary spending and business confidence.
"In response, we are taking prudent steps to align our operations with current and projected demand."
The redundancies would account for less than two per cent of its 2,889-strong workforce and affect salaried and management positions.
It follows a redundancy programme announced shortly before Christmas last year which saw 240 production workers lose their jobs owing to "challenging market conditions".
The business recorded a £23m loss in 2023, but following an "ambitious business turnaround" it achieved a £4.9m profit last year.
It confirmed it had delivered on restoring the company to "sustainable profitability".
"We take extremely seriously our responsibility to safeguard the long-term success of the business for the sake of all of our employees, supplier and distributor partners and our customers," the company said.
"We remain fully committed to our people, customers, and partners, and continue to focus on delivering world-class yachts and exceptional service."
Mark Richards from trade union Unite, which represents several staff at Princess Yachts, said the announcement was not a surprise as the company needed to adjust its boatbuilding programme for 2026 and was merely "aligning the costs".
He expressed hope that some of the affected staff would be retained and return to the shop floor.
"We are trying to reduce the number, we think there will be about 40 affected," he added.
Labour MP for Plymouth Sutton and Devonport, Luke Pollard, said: "Princess Yachts plays a key role in Plymouth's maritime sector and contributes significantly to the local and national economy.
"They export nearly everything they make and employ thousands of people in Plymouth. I'm in touch with the company and will continue to back efforts to keep Princess successful."
