blog header image

Posted : 01 May 2019 at 10:37:17
Category: News

Share this article

Galliford Try is preparing to swing the axe at the construction division after telling staff yesterday that 350 jobs are at risk.

Galliford Try is counting the cost of undertaking major infrastructure projects in Scotland like the Queensferry Crossing and Aberdeen Bypass

A wave of job cuts is planned in a UK wide restructuring aimed at reducing the size of the construction business.

The Scottish infrastructure division is expected to bear the brunt of the cuts. In a statement the firm said the business was at risk of closure as it aimed to de-risk future activities.

Gallford Try revealed it was reviewing construction operations earlier this month after it was forced to warn group profits would be £30m-£40m below previous forecasts.

It blamed the profit warning on final settlement on the £1.4bn Queensferry Crossing project, which followed heavy losses on the Aberdeen Bypass. It also warned of problems with other construction contracts.

As well as streamlining construction, the review will scrutinise contract positions throughout the construction business and assess operational progress.

The outcome of the review will be reported in a trading update in mid-May.

A spokesman for the firm said: “Galliford Try has been undertaking a review of its construction and investments business with a view to reshaping its operations to become more efficient and increase profitability.

“Today we have announced to our employees the proposals emanating from that review which will involve the proposed closure of parts of the division, with potentially some job losses involved.

“The major part of the proposed reorganisation will potentially see the Infrastructure business unit in Scotland be closed. It is a matter of record that for some time our business has sustained considerable losses on two major infrastructure projects within Scotland.

“We remain fully committed to our existing profitable building operations for Morrison Construction in Scotland, delivering much-needed public facilities together with our partners in the hub vehicles.

“As a business, we are confident that the proposed structure we are looking to put in place will provide us with robust foundations and leave us better suited to face the key markets where our future success lies.”

 

Original source - Construction Enquirer

SIMILAR NEWS

blog header image
NEWS
NUMBER OF FURLOUGHED CONSTRUCTION WORKERS FALLING FASTER THAN WIDER ECONOMY

Number of furloughed construction workers falling faster than wider economy  Latest HMRC data shows size industry’s furloughed workforce shrank by 15% in March The numbe ...

blog header image
NEWS
WILL THEY COME BACK? WHY BRITISH CONSTRUCTION LOST ITS EASTERN EUROPEAN WORKFORCE

In recent weeks, a persistent rumour has been circulating about migrant workers in construction. The specifics differ, but the central premise is the same: ‘foreign workers have taken the govern ...

blog header image
NEWS
CONSTRUCTION OUTPUT GROWS BY 1.6% IN FEBRUARY

Construction output grew by 1.6% in February 2021, largely thanks to a 1.5% increase in new work and 1.9% increase in repair and maintenance, as the industry maintains its recovery The level of constr ...

blog header image
NEWS
IR35: RISHI SUNAK URGED TO AMEND ‘FLAWED’ OFF-PAYROLL RULES TO ENSURE SELF-EMPLOYED RIGHTS

IR35 LEGISLATION must be re-examined to correct the "fundamentally flawed" nature of how off-payroll rules operate, a group of MPs have said. IR35 changes kicked in this month, following a year of del ...

blog header image
NEWS
FREE HOME TESTING COVID KITS NOW AVAILABLE TO ALL CONTRACTORS

Construction companies can now order free Covid test kits for workers to use at home. The extension of the workplace testing regime will supply home test kits to companies with over 10 workers where ...

blog header image
NEWS
EMPLOYMENT LAW CHANGES: WHAT YOU NEED TO KNOW

With Brexit, Covid, and new tax rules for the self-employed, this year sees a plethora of significant changes in the field of employment law. Here is a recap of what you need to know. 1. End of furlou ...

business-directory Business Directory
smartbusinessdirectory Payroll Services Business Directory
truebusinessdirectory payroll-services Directory
payroll-services Directory