The London Electric Vehicle Company is seeking ways to lower its costs and improve efficiency. Hence, LEVC has announced to cut 140 jobs across the United Kingdom.
Layoffs to remain profitable
LEVC is a subsidiary of China’s Zhejiang Geely Holding Group and makes London’s battery-powered black cabs. Moreover, they have more than 4,400 cars on London’s streets. However, the company claims that COVID-19 had a severe effect on its business which led to disruptions in its supply chain operations. Hence, the company has initiated a voluntary redundancy program in a bid to sustain profitability. In addition, the company also stated that they need to go through this restructuring process to meet contemporary global challenges.
The electric vehicle maker had a headcount of 550 employees in 2021. Therefore, laying off 140 employees means that the company is cutting roughly 25 percent of its total workforce. However, the company did not provide the exact number of its existing workforce. Although, the company claims the Ansty site has helped create more than 1000 new jobs since its inception. These include 200 engineers and 30 apprenticeships. The company has communicated the staff regarding layoffs. Moreover, the layoffs will be made on a voluntary redundancy basis. But, LEVC’s spokesperson did not provide any information regarding the affected departments.
“We are exceptionally proud of our world-class products, our home in Ansty and our employees. However, the business was heavily impacted by the pandemic, as well as the wider global economy. Therefore, to put LEVC on the path to resilient, sustainable profitability and growth, we are strategically restructuring the business.” LEVC CEO said in a statement.
The company hoped to bounce back after showing poor result in 2020 amid eruption of pandemic. However, they reported a loss of 118 million pounds in 2021. Contrary, the company was expecting to remain profitable in 2021.
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