Macdonald Hotels blames costs hike for axing 50 jobs at Bathgate HQ

Macdonald Hotels is to make dozens of staff at its Bathgate HQ redundant because of “unsustainably high” costs.

In a letter to staff the company claimed “above inflation” rises in their “already significant” business rates, cost increases due to the rise in the minimum wage and uplifts in energy and utility costs had caused difficulties for the business. They also blamed increased apprenticeship levies and pension obligations.

Now the firm, which operates upmarket hotels in Edinburgh, Aviemore, Aberdeen, St Andrews and elsewhere across Scotland and England, has entered into a consultation with staff.

They plan to “reduce group headcount” by around 50.

It is thought that some staff will be redeployed within the business where possible. It is understood the redundancies will come from back office staff working in areas such as marketing, conferencing, IT, accounting and payroll.

A spokesman for the firm declined to comment.

One former staff member, who asked not to be named, said: “It is a real sickener for the staff starting a new year with this hanging over them.

“There has been a lot of worry within the company about how Brexit might impact on them – the hospitality industry could well be susceptible to problems retaining European staff and a downturn in income if the economy takes a downturn.

“The company are not blaming Brexit, but the political uncertainty has been cited as a factor in the rising costs.”