Victrex, the Lancashire-based polymer manufacturer, has announced plans to cut approximately 10% of its global workforce after reporting a significant pre-tax loss for the first half of its financial year. The company, which employs around 1,100 people worldwide, said the job reductions will primarily affect central operations rather than customer-facing roles and are scheduled for the third quarter of 2026.
Financial Performance
For the six months ending March 2026, Victrex reported a pre-tax loss of £44 million, a sharp decline from the £17.2 million profit recorded in the same period last year. The loss was largely attributed to a £60.6 million non-cash impairment charge related to a manufacturing facility in China. Underlying pre-tax profits, which exclude exceptional items, fell by 18% to £19 million.
Profit Improvement Plan
The company is implementing a profit improvement plan to strengthen its financial position. CEO James Routh stated that the plan is "progressing well" and will help drive sustainable growth. As part of the plan, Victrex expects to incur up to £10 million in exceptional costs for the current financial year, including severance expenses.
Routh commented: "During my first four months leading Victrex I have been greatly impressed by our strong, differentiated products and solutions, and well invested assets. However, despite the passion and innovation amongst our people, we have not adapted quickly enough to changed market conditions and we must now relentlessly focus on improving our execution."
Market Reaction
Shares in Victrex were lower in early trading on Monday following the announcement. The company has not disclosed the exact number of employees affected by the job cuts, but based on its latest annual report, a 10% reduction would affect approximately 110 workers globally.
