Scotland's state-owned shipyard to cut a quarter of its workforce

Scotland's state-owned shipyard is to cut nearly a quarter of its total workforce while it waits for confirmation of promised new orders.

Workers at Ferguson Marine have been invited to apply for voluntary redundancy as construction draws to a close on the second of two long-delayed CalMac ferries.

The Port Glasgow firm currently employs 283 staff, including 34 apprentices - but says it expects to shed 70 posts through a voluntary redundancy process.

The Scottish government has promised to directly award the yard new orders for four smaller ships, but ministers say they are still conducting "due diligence" on the plan.

It was nationalised in 2019 after a long dispute between its former owner and government-owned ferries agency Caledonian Marititime Assets Ltd (CMAL) over claims for extra costs for two dual-fuel CalMac ferries.

The first, MV Glen Sannox, was finally delivered in November 2024, while MV Glen Rosa is due for completion by the end of this year.

The shipyard recently completed sub-contracting work for BAE Systems for new Type 26 frigates and currently has no confirmed future orders.

Ferguson Marine CEO Graeme Thomson said the yard's immediate focus was the handover of Glen Rosa before the end of this year.

"However, as the vessel nears completion, we face an inevitable gap in workload while we work with the Scottish government to make the relevant preparations to enable us to proceed with contract negotiations.

"Shipbuilding capability relies on continuity and while changes of this nature are difficult, taking proactive action now ensures we protect the long-term viability of the yard and remain lean, modern, and ready to cut steel on the new fleet as quickly as possible."

In March, before the Holyrood election, the Scottish government announced plans to directly award the shipyard contracts for four future vessels.

It said the vessels - two small CalMac ferries, a fisheries research ship and a marine protection vessel - would provide a "bridge to the future" for the yard.

The then Economy Secretary Kate Forbes said the government had "done a lot of the upfront work in terms of scoping out, securing some of the legal advice about what is possible".

But she added that engagement with the Competition and Markets Authority would be required.