Helical Technology of Dock Road, Lytham, said it intends to commence collective consultations across the business with a potential 47 roles to be at risk of redundancy.
It said a comprehensive re-organisation of specific functions has been necessary as the Covid-19 crisis has hit both the order book and supply chain.
The firm which makes high performance parts for car engines and exhausts and offers research and development functions, is implementing a strategic review of all functions which has created the requirement for a reduction in labour costs but it hoped to minimise redundancies.
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The family owned company, which also has a unit at Warton, said it was determined to minimise the impact of this current financial crisis to employees, and would be working towards a leaner and more efficient structure that will enable the long standing family business to continue to grow and offer employment to local people in the future.
Alistair Morris, MD said: “Unfortunately, the fallout from the pandemic on our business has been dramatic and within the space of two months our order book has fallen by over 20 per cent and is unlikely to recover in the near future.
"Sadly, and despite the crucial support of the Government’s furlough scheme, we are left with no choice but to restructure the business, so that our costs reflect and are more closely aligned to the new sales forecasts.
“Our workforce is fundamental to the success of the company and we will do all we can to support those valued members of staff who will be affected by the redundancies.”