Finning in new job axe

Finning UK says jobs will go this month as it looks to cut costs amid an economic downturn which has had a big impact on the heavy machinery industry.

Nationally Finning, which employs 500 staff in Cannock and 3,500 UK-wide, says it will also close Hewden depots with the loss of 220 jobs.

Staff have also seen overtime and expenses cut.

Despite the news bosses at the firm, which celebrated its 75th anniversary last year, said it was well placed to come out of the recession in a strong position.

Managing Director Andy Fraser said adverse changes in the economy had impacted on the business, its competitors and partners.

He said: "Our goal must be to steer the business through the economic challenges as carefully as possible to ensure we emerge as a strong and viable business.

" This does mean some difficult decisions have to taken and the organisation will have to adjust itself to reflect current market demands."

He added: "We are focusing on costs and this does mean reducing the size of our operations and support functions. This will be a difficult time for those colleagues who are affected by these changes and we would ask for sensitivity and support."

Mr Fraser said the firm would look at areas where savings could be found and was committed to open communication and full consultation with staff.

He said: "Both Finning UK and Hewden are strong businesses with loyal customers and great brands that have stood the test of time." Mike Davies, Finning UK group HR director, said they saw a strong future for in the UK and that they at this stage they had no plans for any further large scale redundancies.