Hundreds of Jobs to Go at Ineos Automotive
Ineos Automotive, the car manufacturer owned by billionaire industrialist Sir Jim Ratcliffe, has announced it will cut hundreds of jobs from its global workforce. The company, which employs around 1,700 people, stated the reductions will affect "several hundred" head office staff across multiple locations, including the UK and parts of Europe.
Strategic Restructuring and Mounting Pressure
The job cuts form part of what the company describes as "strategic measures to structure its business", aimed at simplifying its head office to improve efficiency. This decision comes as Ratcliffe's sprawling business empire faces increasing financial pressure. The cuts are not expected to impact the company's automotive plant in Hambach, France, which manufactures the Ineos Grenadier off-road vehicle.
The automotive venture has faced a series of setbacks, including a major recall of more than 7,000 Grenadier vehicles in the United States due to faulty doors. Further complications arose from Donald Trump's decision to impose higher tariffs on car imports into the US, the Grenadier's primary market.
Broader Business Challenges and Debt Concerns
Ineos Automotive operates within a larger conglomerate focused on chemicals manufacturing, which is also experiencing significant strain. Last month, Ineos closed two chemical factories in Germany and announced plans to cut a fifth of jobs at its East Yorkshire plant, citing "sky-high" energy costs and "dirt-cheap" imports from China.
The company has been vocal in its criticism of European green policies, accusing the region of "industrial suicide" through regulations it claims increase energy costs. The group is actively filing anti-dumping cases to block cheap chemical imports into the EU, attempting to shield its core petrochemicals business from further financial damage.
Financial health checks from leading credit rating agencies have raised serious concerns. Both Fitch Ratings and Moody's flagged issues with Ineos Group's debt, which could climb to nearly €12 billion (£10 billion) this year. According to Fitch, the company's debts have reached a level eight times larger than its annual earnings, significantly higher than the five to six times ratio noted in February.
Ratcliffe, whose net worth is estimated at £17 billion according to the Sunday Times Rich List, built his empire through strategic acquisitions funded by debt. His recent diversification into sports teams, including a minority stake in loss-making Manchester United FC, and the now-sold Belstaff leather jacket brand, has expanded his interests beyond the core chemicals business.
