Redundancies on the cards at Eddie Stobart Logistics

Eddie Stobart Logistics (ESL) is preparing to make redundancies across the group, motortransport.co.uk has learnt, with sources claiming around 100 jobs are at risk.

The company confirmed this week that redundancies are on the cards but declined to say how many jobs are under review.

In a statement ESL said: “Like many other businesses, we are dealing with unprecedented circumstances due to the Covid-19 pandemic.

“Across some areas of our business, we have engaged with our colleagues who are at potential risk of redundancy.

“We continue to review the structures of our business, whilst remaining focused on meeting the business needs and services of our customers.

“We are unable to comment further at this time.”

ESL did not say how many jobs will be lost. However industry sources claim the company is looking at cutting around 100 jobs across a number of divisions.

Unite pledged to oppose what it described as “opportunistic” job cuts at the company.

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Adrian Jones, Unite national officer for road transport and logistics said: “There is a total lack of any genuine consultative structure within ESL, so the company saying it is engaging with employees does not hold much water.

“Unite will represent all members whose employers are threatening redundancies whilst the government’s job retention scheme is still in operation.

“We fully appreciate that many companies are facing a very uncertain future, but this opportunism by an employer, who has time and again shown no loyalty to its workforce, must be opposed.”

Union Unite has been voicing its concerns about the security of jobs at ESL since February this year after the company revealed heavy losses in its half-yearly results.

The interim results showed that despite increasing revenues by 26% to £421.3m compared with the six months ending 31 May 2018, the troubled firm had made a loss before tax of £199.8m in the six months ending 31 May 2019.

The interim results followed a turbulent six months which began when ESL’s shares were suspended and chief executive Alex Laffey resigned in August last year after the group discovered that its 2018 profits had been overstated by £2m.

In December, as the company came close to collapse, shareholders voted to accept a £75m takeover bid by private equity firm DBAY Advisors.

Last month the UK’s audit watchdog, the Financial Reporting Council, launched an investigation into the audits of ESL’s accounts for the years to 30 November 2017 and 30 November 2018, which were carried out by KPMG and PWC respectively.