Ineos to Cut Hundreds of Head Office Jobs Amid Financial Struggles and Market Pressures
Ineos Automotive is set to cut several hundred head office jobs globally, primarily targeting its UK and other European locations to simplify its head office and improve efficiency. The exact number of job losses has not been disclosed. The Hambach, France plant, which produces the Grenadier, is not expected to be affected by these cuts.
The company faces significant challenges with its Grenadier model, including a recall of more than 7,000 US-registered vehicles due to faulty doors. Additionally, US tariffs on car imports have increased pressure on the Grenadier's largest market. This adds to the financial strain on the company, which is already grappling with a concerning debt profile.
Credit rating agencies Fitch and Moody’s have flagged Ineos’s high leverage, with debt currently around eight times earnings. This marks a rise from earlier estimates of five to six times earnings, and total debt could rise toward €12bn (£10bn). To counter the financial pressures, Ineos is pursuing anti-dumping actions aimed at blocking cheap chemical imports into the EU to protect its petrochemicals business.
Aside from automotive challenges, the company has recently closed two German chemical factories and will shed about 20% of jobs at its East Yorkshire plant due to high energy costs and competition from cheap Chinese imports.
Jim Ratcliffe, with a net worth of about £17bn, has built Ineos through debt-financed acquisitions since acquiring an Antwerp BP facility in 1998. He also obtained a minority stake in Manchester United in 2023 and recently sold the Belstaff brand to Castore in September.
