Staff at Andor Technology, originally a spin-out of Queen’s University Belfast, are facing 18 potential redundancies at its Belfast site, despite the firm’s profitability.
The firm was acquired by Oxford Instruments (OI), itself a spin-out of the eponymous institution, in December 2013 for £176m ($272m). The Belfast-based camera manufacturer has remained a profitable part of OI since the deal, according to a recent trading update.
However, OI has had to slash its profit forecast due to international sanctions imposed upon Russia affecting trade with the country. The company is now working on the assumption that it will not be able to make any sales to the former Soviet state during this year or 2016. Combined with a lacklustre recovery of sales to Japan, the company has adjusted its profit before tax estimation for the current year to £35m – below market expectations.
Subsequently, the firm is taking action to reduce costs, which OI says will likely result in the closure of some sites and a decrease in headcount.
The move has attracted criticism from Unite, which called the decision “indefensible” and is consulting its members on a response to the redundancy plans, according to Jackie Pollock, regional officer at the trade union.
Pollock added: “This decision is completely unjustified in light of the continued profitability of the Belfast plant. The workforce at Andor has displayed a high level of commitment to the company during its transfer to Oxford Instruments and this announcement represents a betrayal of that loyalty.
“This decision reflects the impact of the global downturn on Oxford Instruments, which is highly leveraged as a result of its acquisition activities. It does not reflect the situation in Andor itself which remains highly profitable with a strong demand for its cutting-edge products. The job losses are doubly inexplicable at a time when the plant is more and more reliant on overtime – just this weekend they have again notified the workforce of a possible requirement for overtime working.”
