Scotland’s Last Shipyard Cuts 70 Jobs as Ferries Finally Near Completion
Ferguson Marine announces voluntary redundancies for up to a quarter of its workforce.
Scotland’s financially troubled Ferguson Marine shipyard is set to shed up to a quarter of its workforce, as the state-owned yard prepares for a critical transition period. The company has launched a voluntary redundancy programme targeting 70 employees, a move it describes as necessary to align skills with upcoming contracts and address an “inevitable gap in workload” following the near-completion of two long-delayed LNG-powered ferries.
The nationalisation was intended to stabilise operations and complete two overdue LNG-powered ferries for CalMac Ferries and its parent company, Caledonian Maritime Assets Limited (CMAL).
The first of the two ferries, Glen Sannox, was finally launched in 2023 but remains unfinished, while the second, Glen Rosa, left the building area in mid-June for final dry docking and hull cleaning. The yard reports that Glen Rosa is now undergoing interior outfitting, including painting, flooring installation, and the fitting of ceiling tiles and wall panels.
In a statement, Ferguson Marine CEO Graeme Thomson acknowledged the progress but warned of the challenges ahead. “Our immediate focus remains the safe, high-quality handover of Glen Rosa in Q4 2026,” he said. “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.”
Years of Delays and Financial Struggles Culminate in Workforce Cuts: ferguson marine shipyard
“At the same time, we are doing everything in our power to ensure the yard is structured to offer secure, long-term careers once the new build programme gets underway.”
Graeme Thomson·CEO of Ferguson Marine
The Scottish Government has stepped in with a financial lifeline to secure Ferguson Marine’s future. In March, it announced plans to award the yard four new vessel contracts, including two ferries for CMAL, a Marine Protection Vessel (MPV), and a Marine Research Vessel (MRV). The contracts are seen as critical to keeping the yard operational and providing a pipeline of work once the current ferries are delivered.
To support the transition, the government has also provided £14.2 million ($19 million) in capital investment. The funds are being used for infrastructure improvements and equipment upgrades aimed at making the yard more competitive. Ferguson Marine reports that due diligence for the new contracts is currently underway, with the workforce reductions designed to ensure the yard is “fully prepared to commence work as soon as the contracts are finalised.”
Government Lifeline and New Contracts Offer a Glimmer of Hope
The yard has also been involved in other projects to maintain cash flow. The blocks are part of the HMS Birmingham, the fourth ship in the Type 26 frigate programme being executed by BAE Systems.
Despite these efforts, the shipyard’s struggles have become a politically charged issue in Scotland. The delays and cost overruns on the CalMac ferries have drawn criticism from opposition parties, while the government has defended its investment as necessary to preserve jobs and shipbuilding capacity in the region.
The Scottish Government’s intervention at Ferguson is seen as a test case for whether public ownership can revive the industry and secure its long-term future.
For now, the yard’s employees face an uncertain future. The voluntary redundancy programme offers a financial cushion for those who choose to leave, but the cuts underscore the fragility of the shipbuilding sector in Scotland. As the Glen Rosa nears completion, the focus will shift to securing the new contracts and ensuring the yard has the skills and capacity to deliver them on time and on budget.
Sign up free to ask CAMAL AI for a summary, the key points or anything else about this story.
Related stories
CAMAL AI
Financial Ports Newsletter
The maritime economy, every morning
Ports, shipping and freight markets in one short email. Free.
