ATS Euromaster has announced significant downsizing plans, aiming to cease operations in the UK by closing 86 of its least profitable service centers. This decision comes after years of cost-cutting efforts that have not been sufficient to maintain profitability in a challenging market. As a result of this measure, more than 700 jobs are at risk, representing a substantial impact on workers in the industry.

In an attempt to mitigate the job losses, ATS Euromaster has initiated discussions with two potential buyers interested in acquiring parts of its operations. Specifically, the plan involves selling 35 branches to Formula One Autocentres and transferring 14 locations to S&M Tyres, operating under the Elite Garages brand. These negotiations highlight a proactive approach by ATS Euromaster to ensure continuity of service at some locations and preservation of jobs where possible.

The potential closure of these branches not only raises concerns for employees but also reflects broader trends in the automotive service industry, where many businesses are struggling with profitability amid economic challenges. The closure could signify a shift in how market players operate and serve customers, emphasizing a shift in focus for those remaining in the sector, particularly as consumer preferences evolve towards different service models.