NewsDyson to cut 1,000 jobs amid founder's tax criticism

Dyson to cut 1,000 jobs amid founder's tax criticism

A vacuum cleaner made by Dyson
A vacuum cleaner made by Dyson
Images source: © Adobe Stock | ltyuan
Jacek Losik

10 July 2024 21:12

According to the BBC, the Dyson company, renowned for producing bagless vacuum cleaners, plans to lay off one-third of its employees in the United Kingdom. This means that over 1,000 people will lose their jobs. The founder of the home appliance manufacturer has been heavily criticising the government for its economic policy in recent years.

Dyson employs 3,500 people in the United Kingdom. However, as British media reported, this number is set to decrease by one-third in the near future. The CEO, Hanno Kirner, quoted by the BBC, said that the company must be "entrepreneurial and flexible."

"Decisions which impact close and talented colleagues are always incredibly painful," said Kirner. "Those whose roles are at risk of redundancy as a result of the proposals will be supported through the process."

Billionaire complains about taxes in the United Kingdom

The BBC notes that the decision to make redundancies was preceded by many years of criticism of the British government by the company's founder, Sir James Dyson. According to the billionaire, it was about the excessively high corporate income tax, which is a tax on businesses.

"Business of all sizes, much like households, have been hit by rising costs and bills in recent times. Corporation tax, which is paid on the profits of UK companies to the government, increased in April 2023 to 25% from 19%," - the BBC says.

Five years before the tax increase, Dyson moved its headquarters to Singapore. The company's founder said he intended to invest in "future-proof economies" that encourage growth.

Dyson assured that the United Kingdom "will remain a vital centre" of research and development. However, one of the company's employees told the BBC that "everyone involved in R&D have now exited all Dyson buildings," which starkly contrasts the businessman's statements.

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