Peterborough-based engineering giant Perkins looks to cut staff numbers at city factory
An engineering giant is looking to cut the number of staff working at its Peterborough base.
Perkins Engines, based at Frank Perkins Way, in Eastern Industry, where it employs about 2,500 staff, is currently examining ways to reduce the size of its workforce.in a bid to protect the future of the business.
It says the move will set the business up to enjoy success over the coming years.
A spokesperson for Caterpillar, which owns Perkins Engines, said: “We continue to evaluate our business to ensure we can meet customer needs while investing for long-term sustainable growth.
"This includes considering limited workforce reduction plans.
"We know this is difficult for our employees, but we are taking steps to position the company for long-term success.”
It is understood that Perkins are considering about 100 plus redundancies and are likely to mean some staff leaving in mid-January.
News of the pending staff reductions comes at a time as many companies in Peterborough and the surrounding area are struggling to grow sales.
Perkins has sought to make changes to its business over the last few years. About three years ago it announced it was investing in a new test facility as the business looked to switch from being primarily a diesel engine manufacturer to electric engines.
The company provides engines for a range of markets including agriculture, construction, material handling, power generation and industrial.
New data shows many local companies are experiencing tough times.
Findings from Cambridgeshire Chamber of Commerce’s new quarterly survey of the local economy found that many firms say they are battling a ‘stagnant’ local economy.
Just 26 per cent of businesses reported an increase in UK sales in the last three months of 2025 while 30 per cent saw a fall in overseas sales, highlighting continued weakness in international demand.
68 per cent of business leaders say they are operating below full capacity, which reflects a lack of strong growth drivers as firms look ahead to the new year.
Recruitment challenges also remain a defining issue for local employers.
While 58 per cent of businesses attempted to recruit during the quarter, 78 per cent experienced difficulties, particularly in skilled manual, technical and professional roles.