Bentley Motors to Lose 1000 Jobs

Bentley Motors – Courtesy Cheshire Live

Bentley's statement in full

As it prepares to start its 101st year on 10 July, Bentley Motors has announced the Beyond100 strategy, a programme that will redefine Bentley for the next 100 years.

"This plan was due to be announced in March, however was deferred due to the tragic effects of the COVID 19 crisis.

Beyond100 is a strategic plan that will drive Bentley towards its ambition to become the world's benchmark luxury car business, a leader in sustainable luxury mobility, financially resilient and recession-proof."

While Bentley's direction and goals remain as defined in March, the significant effects on the short-term financial outlook for the company means that Bentley, with deepest regret, has today informed its 4,200 colleagues of a programme to significantly reduce the size of the organisation through a voluntary release programme.

Bentley is in the middle of a major change programme started in 2018, driving for consistent financial resilience through rapid productivity improvements across the business that produced a positive operating result swing of €300 million in 2019, and to a record performance in Q1 2020.

Although organic growth was the planned solution for the remaining restructure challenge, this was clearly derailed by the impact of the pandemic.

With this considerable forecast reduction to future revenues, Bentley has hastened plans carrying out a comprehensive review of its cost and investment structure – and as the last resort, as with any organisation, the people costs and structure.

Steps had already been taken to cut or delay unnecessary spend without impacting future product plans. Recruitment was stopped, contractors were released across all business areas, pay was frozen and up to 66 per cent of colleagues at peak were placed on furlough.

One further clear conclusion was that an urgent reduction in the workforce was unfortunately required.

As a result, the company has launched a voluntary release programme aimed at achieving this in the most caring and socially responsible way.

Letters have been issued to all colleagues outlining the personal financial terms of the offer based on length of service, age and salary.

To make career transitions easier, Bentley is also providing financial support towards career guidance for all colleagues that choose to pursue a new professional direction.

In the interest of protecting Bentley through this immediate crisis, avoiding any further reductions in colleague numbers, and securing the company's future, Bentley is looking for as many as 1,000 colleagues to accept these terms.

However, Bentley cannot rule out future compulsory redundancies.

Adrian Hallmark, Chairman and Chief Executive Officer of Bentley Motors, said: "Losing colleagues is not something we are treating lightly but this is a necessary step that we have to take to safeguard the jobs of the vast majority who will remain, and deliver a sustainable business model for the future through our Beyond100 strategy.

"The voluntary release programme at least allows the colleagues to make the personal choice and leave us with the most appealing and supportive offer possible within the circumstances.

"COVID-19 has not been the cause of this measure but a hastener."

Beyond100 will deliver a paradigm shift throughout the organisation helping to deliver a financially resilient, recession-proof business for its second century.

Mr Hallmark continued: "It is vital, even more so now with what is going on around us that we look to the long-term future of Bentley.

"This means fundamentally redefining our company so we respond immediately to protect the business through this crisis, continue to lead our sector by reinventing the company and look to establish ourselves as the leader in sustainable luxury mobility for the next 100 years."

Bentley's approach to redefining its business will be built around the aim of becoming the leader in sustainable luxury mobility.

Beyond100 will include a structured, business-wide sustainability programme which includes the development of electrified models throughout the range that began with the Bentayga Hybrid.

"This involves an accelerated journey towards electrification with every model line-up offered with the option of a hybrid variant by 2023, then with Bentley's first pure electric model to be launched in 2026.

Beyond100 also includes a social focus, creating healthy communities by enabling social cohesion and mobility. This need was at its greatest over recent weeks as Bentley extended its 'Be Safe' initiative to support the wider community.

"This includes supplying over 30,000 3D printed face-shields to the Cheshire care sector, NHS and community services and vital PPE equipment and resources shared. Colleagues also volunteered to support vulnerable members of the community struggling to access food and prescriptions, making deliveries using Bentley vehicles in the 'Meals on 22-inch Wheels' service.

"On site at the Crewe headquarters there is also clear ambitions, aiming to continue to improve its environmental management. Last year, the production facility became the first luxury automotive factory in the world to be certified carbon neutral by the Carbon Trust.

This followed two decades of implementing innovative solutions, including a water recycling system in the paint shop, local tree planting, installation of a 10,000 solar panel carport and a switch to renewable-only electricity sources.

Further details on the environmental measures, and Bentley's wider Beyond100 strategy will be outlined in the coming months.