Stamford’s largest employer is cutting 95 jobs as it tries to cope with dwindling global demand.
The news was broken to about 800 staff at Cummins Generator Technologies, based in Barnack Road, Stamford, on Monday.
The firm said it had to cut the jobs because of an unexpected downturn in demand from its customers all over the world.
Voluntary redundancies are being offered and Cummins has entered into a 30-day consultation with staff and the Unite union to try to keep compulsory redundancies to a minimum.
The firm wants to cut all 95 jobs by the end of December.
The news comes after Cummins was awarded a £2m grant from the Government’s Regional Development Fund to spend on research and development at the Barnack Road plant over the next five years.
Plant manager Gareth Hopkinson said the job losses were linked to short-term economics and he was confident the firm would bounce back.
He added: “We have been in Stamford for more than 100 years and we want to be here for 100 more.
“The Regional Growth Fund grant is an example of that long-term commitment. It is linked to investment in Stamford.
“I strongly believe we will come back a lot stronger. We will then be in a position where we can compete with companies in China and India.
“We are having to balance our short-term economics and we are still focused on the long-term vision.
“We are committed to manufacturing in Stamford.”
Unite senior representative Phil Sykes said: “This is devastating news for Stamford. We have worked hard over the last two years to reduce costs on the site to secure a long term future but this current economic situation is not helping.”
Alltech UK has also announced today (Wednesday) that 43 staff from its factory in Ryhall Road, Stamford, and a warehouse in Pinfold Road, Bourne, could lose their jobs.
The company wants to move production closer to its raw material factory in Belgium.