UPDATE: Over 1,000 jobs have vanished in the North East as a wave of company collapses devastates the region in 2025. With hundreds more jobs still at risk, urgent action is needed as multiple businesses face closure amid rising costs and declining demand.
In November, the construction firm Merit fell into administration, resulting in the loss of 340 jobs. Once celebrated as the region’s leading modular building company, Merit was actively working on the £35 million Berwick Infirmary project at the time, highlighting the severe implications of this collapse. Joint administrators James Lumb and Will Wright from Interpath cited significant cash flow issues due to delays in key contracts.
Adding to the crisis, NSK Bearing and its subsidiary AKS Precision Ball are consulting on the potential closure of their Peterlee sites, threatening 350 jobs. Citing “persistent challenges” in profitability, NSK plans to shut down operations no later than March 2027. The company produces bearings critical for major automotive clients, including Volkswagen and Renault, and the closure would significantly impact local employment.
Meanwhile, the steel manufacturer Union Electric abruptly closed its gates this month after being placed into administration, resulting in the loss of 156 jobs. The company, with a rich history of over 180 years, faced rising costs and fierce overseas competition. Its swift transition to administration has left employees furious, as earlier redundancy agreements were rendered void.
In February, Zytronic announced an orderly wind-down after discussions for a potential buyer faltered. The company, which once employed around 50 staff, struggled to recover following the bankruptcy of a major US customer, highlighting the ongoing economic challenges in the sector.
The collapse of Venator Materials UK Limited resulted in the loss of 270 jobs, with administrators stepping in after the parent group went under last month. The future of Venator’s production facilities is uncertain, but a sale with China-based LB Group has been agreed, providing a glimmer of hope for the idle Greatham site.
Additionally, the long-standing chemical plant Sabic faces closure, putting at least 100 jobs at risk. The Teesside Olefins 6 plant, operational for 46 years, is being shuttered as its Saudi owners reassess global market dynamics. The facility has been inactive since late 2020, and plans to convert its operations are stalled.
The job losses extend to Energy Compare, which closed in March, leaving 120 individuals without work. Fortunately, rival Betr Outsourcing intervened, saving 100 jobs and providing immediate support for former employees.
Lastly, the Tyneside legal sector was shaken when Samuel Phillips Law abruptly closed, ending a legacy that spanned over 100 years. The firm is now under investigation for “suspected dishonesty.” Former employees took to social media to express their shock at the sudden closure.
As the North East grapples with these unprecedented job losses, urgent support and intervention are essential to mitigate the impact on local communities. The ripple effects of these closures are being felt across the region, and the outlook remains grim as more businesses face uncertain futures.
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