LUXURY yacht builder Princess Yachts is to shed 350 workers but stressed it remains in a strong position despite huge challenges in its global market place.
The manufacturer, which has sites across Plymouth, called a meeting with more than 2,000 staff and unions and announced it would start redundancy consultations as part of a "large scale restructuring".
Jobs will go across the company including in back office and in its development and production divisions.
The firm, which marked 50 years in business in 2015, said the redundancies were "regrettable" but part of a strategic plan to improve productivity.
Moreover, the company stressed its underlying business was strong, that it was not pulling out of Plymouth, remains a major employer retaining 2,000 people, and even expects to grow in 2016.
Nevertheless, the firm said the yacht industry had faced a set of "unprecedented challenges" which had led to it suffering a £11.3million loss in 2014.
Factors hitting the export-heavy industry include unfavourable euro/sterling exchange rates, recession in target markets, political upheaval in the Middle East and Russia, a slowdown in the Chinese economy, and even the 2014 storms which battered the South West.
Just last month Northamptonshire-based competitor Fairline Boats went into administration after what Princess Yachts described as a "gruelling year for Britain's yacht-building industry in 2014/15", which saw other manufacturers suffer factory closures, redundancies and insolvency.
However, Princess Yachts, which has its HQ at Stonehouse, stressed its core business is sound, with a strong order book and that it has pumped "multi-millions" of pounds into developing three new M Class yachts, of which it has already sold a "significant" number.
Indeed, Princess Yachts' management said the development of these boats had required an increase in the number of workers, some of whom are now not needed as the boats enter their "running phase".
The company also stressed it had "weathered" the recent global turmoil, and indeed the recession from 2008, maintained high staff numbers, and had posted a profit of £4.8million in 2013 and recorded turnover of £239.5million in 2014.
It said it is looking to 2016 "with confidence" and is implementing a range of long-term strategic measures designed to steer the business securely into the future.
With six new models across the M Class, S Class, V Class and Flybridge yacht ranges taking the company into new markets and sectors, and strong order books following good performances at the Cannes, Southampton and Ft Lauderdale boat shows, Princess Yachts said it is entering 2016 with "assurance and optimism".
It stressed that despite the forthcoming job losses there would be no loss of capacity and an ongoing investment programme will see its range develop further, and new initiatives secure greater market share and brand recognition.
Chris Gates, managing director of Princess Yachts, said the firm would strive to secure "a bigger share of a smaller market".
He said the company was already outperforming challengers and said: "We are still the strongest in the market place."
He said the firm was looking a "slight growth in 2016" and added: "The strategic review of our business and the steps we are taking to improve production at our Plymouth headquarters have laid the foundations for an ambitious year.
"Our expanded range – with six new models launched in just six months – is the envy of the industry, and our continued commitment to the finest British materials and peerless craftsmanship will always set Princess apart.
"We have invested heavily in state-of-the-art facilities and product development while our competitors' businesses have been contracting, and we are proud of our commitment to Plymouth, having maintained a consistently high level of employment throughout the recessionary period.
"However, like all successful companies, we need to be able to adapt and adjust the constitution of our workforce periodically.
"Today's announcement of job losses, although not undertaken lightly, is designed to maintain the business in the best possible shape for the next phase in its evolution.
"Princess' 50th anniversary finds the company starting the year at both the London and Düsseldorf boat shows with new model launches and strong plans for the future."