National insurance and minimum wage increase blamed for Welshpool job cuts
Welshpool-based Invertek Drives, a global leader in variable frequency drive (VFD) technology, said it has made the cuts to “adapt to current market conditions” after seeing an annual increase of £600,000 in its National Insurance contributions alone.
Earlier this year the company celebrated a record turnover of £96.5 million for 2023, a significant increase from £76.3 million in the previous year.
But this afternoon's shock announcement could be a wake-up call for current Government policy, with the firm currently employing 400 people in Welshpool.
A spokesperson for Invertek Drives, said: “Invertek Drives has made changes to its production operations to adapt to current market conditions. This includes a move to a two-shift, five day system with a reduction of 15 employees.
“This difficult decision was driven by a £600,000 increase in annual National Insurance contributions following the UK Autumn Budget, a 6.7% increase in the minimum wage, coupled with an industry-wide slowdown throughout Europe.
“It positions us for an expected upturn in industry-wide production and sales in early 2025.
“Invertek Drives remains committed to delivering high-quality drive solutions to its global customers as we continue to invest in our future at our headquarters in Welshpool.
“That investment continues with a new and expanded production facility and plans for a new Innovation Centre.”
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