Key Points
- Motonovo, a major employer in Cardiff, is set to cut more than 100 staff amid an ongoing consultation process.
- The firm received a £3m grant from the Welsh Government in 2016 to relocate its office from Llanishen to Central Square in an “enterprise zone” next to Cardiff Central railway station.
- In 2016, Motonovo had 424 staff in Cardiff and planned to hire an additional 587 over five years, but a decade later it employs around 600 people.
- The proposed cuts could reduce the workforce to levels similar to pre-2016 figures.
- A Motonovo spokesman stated: “Some onshore roles within our operational teams will be made redundant but, as the consultation is ongoing, there isn’t a final number at this stage. We appreciate this will be worrying for our people and our priority through this process is supporting impacted colleagues.”
- Latest Labour Force Survey figures show Wales’ employment rate for ages 16-64 at 72.5%, down 0.3% over the last year, compared to the UK’s 75.5%.
- The cuts add pressure to the Welsh jobs market.
Cardiff (Cardiff Daily) April 24, 2026 – A major employer in Cardiff that received a £3m Welsh Government grant is preparing to cut more than 100 jobs, delivering a significant blow to the local and Welsh jobs market.
Why is Motonovo Cutting Jobs in Cardiff?
The announcement centres on Motonovo, a finance company specialising in motor finance, which confirmed to WalesOnline that a consultation process is underway to reduce its workforce. As reported by WalesOnline journalists, the firm currently employs around 600 people in Cardiff. If more than 100 jobs are lost, this would align the headcount with pre-grant levels from 2016.
A spokesman for Motonovo provided the following statement:
“Some onshore roles within our operational teams will be made redundant but, as the consultation is ongoing, there isn’t a final number at this stage. We appreciate this will be worrying for our people and our priority through this process is supporting impacted colleagues.”
This reflects the company’s position as covered directly by WalesOnline.
No additional statements from Motonovo executives or further details on the exact roles affected have been reported across sources at this stage.
What Was the £3m Welsh Government Grant For?
In 2016, the Welsh Government awarded Motonovo a £3m grant to support its relocation from Llanishen to Central Square, designated as an “enterprise zone” adjacent to Cardiff Central railway station. At that time, the company had 424 staff in Cardiff and projected hiring 587 more over the next five years.
WalesOnline reporting notes that, despite these plans, employment growth fell short. A decade on, the workforce stands at approximately 600, prompting the current restructuring.
How Does This Impact the Welsh Jobs Market?
The job cuts come against a backdrop of declining employment in Wales. The latest Labour Force Survey figures, published this week, indicate the employment rate for people aged 16-64 in Wales has dropped to 72.5%, a decline of 0.3% over the past year. This contrasts with the UK rate of 75.5%.
WalesOnline highlights that these Motonovo cuts will exacerbate pressure on the Welsh jobs market, particularly in Cardiff, where the firm remains one of the largest employers.
Background of the Development
Motonovo’s history in Cardiff traces back to its establishment as a key player in motor finance. The 2016 grant formed part of broader Welsh Government initiatives to attract and retain businesses in enterprise zones, aiming to boost economic activity around transport hubs like Cardiff Central. Central Square was developed as a modern business hub, housing various firms alongside Motonovo.
The relocation from Llanishen was intended to expand operations and create sustained employment. However, external factors such as economic shifts in the finance sector, including changes in motor finance demand and operational efficiencies, have influenced the company’s trajectory. The current consultation follows a pattern seen in other sectors, where firms adjust staffing to onshore roles amid cost pressures.
Prediction: How This Development Can Affect Cardiff Workers and the Local Economy
This development can affect Cardiff workers by increasing competition for available jobs in a market already showing employment rate declines. Those in operational teams may face immediate uncertainty during the consultation, potentially leading to redundancies that require retraining or relocation for affected individuals.
For the local economy, the cuts could reduce spending power in Cardiff, impacting retail and services reliant on employee incomes. It may also signal challenges for enterprise zone incentives, influencing future business relocations and government investment strategies in the region.
