Leading boiler maker Worcester Bosch has said it is considering making redundancies as it looks to cope with financial difficulties.

The manufacturer said on Friday it was carrying out a reorganisation across the business, which currently employs about 1,700 staff.

The company blamed a drop in sales, as well as factors including the cost of living, a drop in house building, and a move towards electrification.

It said a consultation period would begin shortly, with support being put in place for staff at its headquarters in Worcester and manufacturing site at Clay Cross in Derbyshire.

Originally founded in Worcester in 1962 by businessman Cecil Duckworth, the company became part of the worldwide Bosch group in 1996.

The vast majority of its gas and oil boiler sales are in the UK.

According to the firm’s latest accounts for 2022, it employed 1,804 staff at the two sites, though the number has since fallen. More than half of the workforce was in production and engineering.

That year, it recorded profits of £75.2m, though revenue had fallen slightly.

However, a spokesperson for the company said market conditions had worsened over the past two years, with a reduction in sales in the UK boiler market.

“It is essential that Worcester Bosch adapts to these market conditions,” they said.

“We have therefore taken the difficult decision to implement a reorganisation exercise across the business which would see changes to working practices and arrangements, [and] regrettably some redundancies may form part of the exercise.”

The company said it would begin a consultation period shortly and said all staff affected would be supported.

“We have over 100 trained mental-health champions available to support, as well as an employee assistance programme and a health and wellbeing team available for any of our staff,” the spokesperson said.

“Out of respect for the people this affects we will not be commenting further on this matter.”