Construction firm Kilmac has revealed about one in 10 of its jobs are at risk, following reports that it was considering cutting its workforce earlier this week.
The firm has broken its silence after the Tele revealed on Tuesday that employees of the company – which has offices in Dundee and Perth – had been sent letters informing them that their jobs were at risk.
Kilmac co-founder Athole McDonald has claimed the industry is experiencing a “downturn”.
He has also outlined the company’s current financial position and the number of roles that may go.
Mr McDonald said: “Our industry can be challenging and as a responsible employer with a loyal and close-knit workforce we have a duty to keep them informed through good times and bad.
“While over 90% of the jobs are secure the thought of being forced to let go any of our personnel is a harrowing one and not an easy pill to swallow at any time of the year, and even more galling with Christmas on the horizon.
“I must stress we are looking at all the options but took the difficult decision to alert staff of potential small-scale redundancies.”
Mr McDonald said he and his fellow directors were doing “everything in our power” to avoid any redundancies, and that Kilmac remains in rude financial health.
But the firm has been crippled by delays in current projects and a failure to successfully bid for new ones.
He continued: “We have faced similar challenges down the years but continue to post six-figure profits, including £243,000 on a £13 million turnover for the current year, which is up from £206,000 on the previous 12 months.
“The construction industry, locally and nationally, has never fully recovered from the global financial crisis of 2008 and we have seen many of our competitors being forced to downsize or go out of business in recent years.
“Kilmac directors appreciate the continued efforts of all our employees during these difficult times and value their continued commitment to the company.
“Looking ahead, we are confident that Kilmac will continue to retain its market share and consistent profitability.
“The directors remain confident any enforced short-term job losses can be addressed when the market traditionally picks up in the new year.”