Corporate raider Melrose has cut nearly 900 jobs at engineer GKN since its controversial takeover
- Staff numbers fell by 861 to 48,068 under Melrose in 2018
- Biggest decline was at its Driveline division, which makes driveshafts for cars
- It was recently revealed Melrose was shutting a GKN factory near Birmingham
Corporate raider Melrose has cut nearly 900 jobs at GKN since its controversial takeover
Corporate raider Melrose has cut nearly 900 jobs at GKN since its highly controversial takeover of the historic British engineer, The Mail on Sunday can reveal.
It follows the news last week that Melrose was shutting a GKN factory near Birmingham that makes plane parts, with the loss of up to 170 jobs.
That has sparked a row about whether the FTSE 100 conglomerate has broken promises made to the Government as part of its £8 billion takeover of the car and plane parts maker a year ago.
Rachel Reeves, chair of the Commons business select committee, said the closure ‘seriously undermines their commitment to boosting the UK’s industrial base’.
The number of staff working at GKN’s operations under Melrose fell by 861 to 48,068 in 2018, Melrose and GKN’s annual reports show.
The biggest decline was at its Driveline division, which makes driveshafts for cars, where nearly 1,000 jobs have been lost, countering smaller job gains at other divisions. The year before the takeover, GKN added around 300 jobs in total.
Melrose has been trying to sell the Powder Metallurgy business, which has increased staff by 200. However, the plan was pulled after bids fell short.
Melrose said it ‘appears to be the result of a short-term spike’ in demand the year before for Auto staff working outside the UK.