296.08 // Selonian Shipyards Announce Layoffs
The Selonian Shipyards have announced that they will liquidate no less than one-thousand jobs in the coming fiscal quarter if profits continue to decline. The shipyards, based around the planet Selonia in the Corellian system, have been facing a decline in investor confidence since the Alliance announced plans to downsize military contracts. With almost a third of all profits coming from the manufacture of parts for the Alliance navy, the long-term prospects of one of Selonia’s largest companies are now under intense scrutiny.
Analysts have postulated that that the Selonian Shipyard’s profit losses are due to a failure to adapt their products to peacetime demand. Tenlin Crespin of C & R Strategic Investments Group voiced this opinion during an interview on Skyline Nightly.
“Selonia has a very strong manufacturing capability, their ability to establish a production line and maintain a high output is something that has been admired for centuries. Their weakness is in the old-fashioned business ideals; refusing to diversify offerings by shifting more R&D into civilian product lines. The Mon Calamari Shipyards has done this with rampant success during peacetime market shifts. Holding on so tightly to military contracts will cast a negative light on the company, portraying them as a flailing arms manufacturer that doesn’t understand how to retain and employ a workforce when their products are no longer in such high demand.”
Though no government officials could be reached for commentary, sources have confirmed that the Galactic Alliance has no plans to change their current parts and equipment contract with Selonia.
Corellian shipwright unions have publicly denounced the announcement, claiming the business case for the layoffs is weak. Spokespersons for the unions have strongly hinted that they will poll their members on the possibility of industrial action should no concessions be obtained from the Shipyards in a timely manner.
T.R. Bankiss // GHN