Administrators for wave energy firm axe majority of employees
Of the 56 staff members, 40 have been made redundant as a buyer is sought for the company.
Administrators for a wave energy company have made 40 employees redundant.
Pelamis Wave Power went into administration last Friday, saying it had not secured enough funding to develop its technology.
The company employed 56 people in Edinburgh and Orkney, 40 of which have been made redundant since administrators were appointed.
This leaves 16 staff, 13 in Edinburgh and three in Orkney, who will continue to work with the administrators.
Blair Nimmo, from administrators KPMG said: "The financial situation of the business is such that we have had to take the difficult choice of making a large proportion of staff redundant.
"We will be working with the employees and the relevant government agencies to ensure that the full range of support is available to all those affected. We would like to thank the staff for their co-operation during this difficult period.
"We will do everything we can to seek a buyer who may be able to protect the business, its skilled workforce and see the continuation of the groundbreaking advances Pelamis has made towards renewable energy production."
Pelamis was founded in 1998 and designs, manufactures and operates wave energy machines.
Updates: Would you like STV’s latest news update in your inbox every morning? Choose from our range of regular e-newsletters here