For the first time later over twenty years, Dyson finds himself dealing with a negative balance. The British giant of domestic technology closed the year with a turnover of 6.6 billion pounds, half a billion less than 7.1 billion in 2023. A figure that affects even more if we consider that the company has sold a record number of products: over 20 million units.
The last time the sales had recorded a less sign dates back to 2002, when Dyson worked mainly in the British market and suffered the consequences of the decision to transfer production to Asia. Then it was a temporary reaction of consumers, today the context appears different and more complex.
The causes of the decline
The CEO of the company, have Kirner, defined 2024 a “difficult” year. The previously imposed profits collapsed by half, going from 1.1 billion to 561 million pounds. The reasons for this flexion must be sought in several factors: the slowdown of the global economy, the lower consumer trust in the purchase of high -end products and some extraordinary events, such as the fire that hit a factory in the Philippines.
The growing international competition has pushed the company to reduce costs. Last year Dyson cut about a thousand jobs in Great Britain, reducing the British workforce by a third, which had about 3,500 employees. A painful choice but deemed necessary to face increasingly fierce markets.
Investments for the future
Despite the difficulties, Sir James Dyson, founder of the company, looks forward with optimism. The company spends 8 million pounds a week in research and development and continues to invest in training through the Dyson Institute. Among the recent launches, the new SuperSonic re the RE’s fine vacuum cleaner Pencilvac stand out, as well as an updated version of the Airwrap styling tool.
The plans for 2025 include innovations of great thickness: new technologies for cleaning dry and wet floors, developments in robotics and in air purification systems. The company also promises a complete reinvention of the hairdryer lines and vacuum cleaner.
Kirner stresses that 2024 represented a year of transformation, which made Dyson a leaner and more productive company, ready to launch many new products on the market. Massive investments in robotics and floors technologies demonstrate the desire to conquer new market segments.
The economic context
Dividends also affected the crisis: payments to the mother company Weybourne Holdings, which manages the investments of the Dyson family, fell from 700 to 200 million pounds. Sir James recently criticized the British government’s balance sheet, calling it harmful to family businesses.
The challenge for Dyson will be to regain growth in a global market where consumers evaluate each expenditure with greater attention and where competitors offer increasingly competitive alternatives.
