Scotland’s Troubled Ferguson Shipyard Plans to Lay Off a Quarter of Staff

Ferguson Marine yard with ferry and frigate blocks — Ferguson Marine says it is in transition after the frigate blocks were loaded out and the ferry Glen Rosa departed for drydocking and final fitting out (Ferguson Marine)

Saying that the state-owned shipyard is entering a transition period, Scotland’s financially troubled shipbuilder Ferguson Marine announced it will start a voluntary program of staff layoffs. The company said it expects to see up to 70 employees depart, which media reports highlight would represent a quarter of its staff.

The shipyard has been struggling to maintain its operations and reduce the financial pressures. After years of struggle, it was nationalized by Scotland in 2019 as the last commercial shipyard on the Clyde, a once-prosperous area for shipbuilding. The yard has struggled to complete a long-overdue project for two LNG-powered ferries for CalMac and its parent company CMAL (Caledonian Maritime Assets Limited) and to find new work.

The yard highlighted in mid-June that the second of the two ferries, Glen Rosa, had finally left the building area for a final dry docking and hull cleaning. Years behind schedule, the vessel’s hull was cleaned and coated while the thrusters and propellers were also cleaned and polished.

Ferguson reports the focus is on outfitting the ship’s interiors, including painting, installing the flooring, fitting ceiling tiles, and wall panels. A final inspection is due to commence shortly, with sea trials and the handover finally expected to be completed in Q4 2026.

The yard also reported at the end of July that it had completed delivery of blocks built for the UK’s new Type 26 frigate. Ferguson, along with Malin Abram and Coastworks, was awarded contracts to build three structural units for the Royal Navy’s HMS Birmingham. It is the fourth ship of the Type 26 frigate program being executed by BAE Systems.

“Our immediate focus remains the safe, high-quality handover of Glen Rosa in Q4 2026,” said Graeme Thomson, CEO of Ferguson Marine. “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… 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 program gets underway.”

The continuing problems at the shipyard became a politically charged issue, and after debate, the government resolved to make an investment in the yard and award it four new building contracts. The government provided £14.2 million (approximately $19 million) in capital investments. It is being used for infrastructure improvements and equipment upgrades to aid the yard in becoming more competitive.

The Scottish Government announced in March its intention to provide a strategic direct award to Ferguson Marine for four new vessels as a lifeline to keep the operation going. They proposed two ferries for Caledonian Maritime Assets Limited (CMAL), a Marine Protection Vessel (MPV), and a Marine Research Vessel (MRV). Ferguson reports that due diligence for these programs is currently underway, while saying the staff reductions are designed to address the size of the business and align skills across the yard, so it is fully prepared to commence work as soon as the contracts are finalized.