Job cuts ‘imminent’ in UK leather industry
A report from Plimsoll on the UK leather industry has predicted 3,068 job losses over the next 12 months. The analysis blamed fundamental business problems rather than global economic uncertainty for the cuts. According to Plimsoll, the rising cost of salaries compared to sales is the main reason why job cuts have become inevitable. The cost of employing people in the leather sector has risen at an annual rate of 9% while sales have fallen at a rate of 5% each year.
The document listed 81 companies in the UK’s leather sector that were in "serious financial distress", and calculated that 44% of companies surveyed would not be able to pay for salary increases next year. David Pattison, senior analyst at Plimsoll, said "There is little doubt that managers will use the current economic and market conditions to make decisions frankly they should have made 18 months ago."
