MAN Truck & Bus UK has confirmed that is looking to cut around 5% of its workforce and will be instituting a "temporary" 5% pay freeze across the whole company, roadtransport.com reports.
Des Evans, the company's chief executive, says the move is a response to the 50% downturn in new truck sales seen this year.
He stresses that this applies right across the whole company. "Senior management are taking a pay freeze from 1 July and will also not be receiving any executive bonus payments this year," he says.
"There will be a temporary pay cut for the rest of the staff who have all accepted it. There has been a fantastic, positive response from people.
"It is not something that we wanted to do but we have got to resize the business."
The pay cut will come into effect from 1 August and be reviewed in July next year.
Evans also confirms that it is reviewing its wholly owned dealer network. "We are examining the sustainability of certain outlying workshops." These may either be sold or closed.
He adds: "I think the action we have taken is prudent and a great deal less than it could have been.
"We have been able to maintain 95% of our headcount, made a big investment in flagship sites in Manchester and Glasgow, we still have our MOD work and there are signs of life in the used vehicle business."