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
CONSTRUCTION GROWTH SLOWS AS COSTS “GO THROUGH THE ROOF”

The pace of construction growth slowed in August as buyers reported near record rises in input cost inflation.       The bellwether IHS Markit/CIPS UK Construction PMI Total Activ ...

blog header image
NEWS
SUBCONTRACTORS HIT OUT AT HMRC OVER SLOW VAT REPAYMENTS

Specialist contractors have hit out at HMRC over the time it takes to reclaim VAT payments following a controversial change in the tax regime earlier this year. The “domestic reverse charge&rd ...

blog header image
NEWS
LABOUR COSTS ‘BREAK RECORDS’ AS VACANCIES SOAR

Recruiters have reported “record-breaking” increases in labour costs as new data shows vacancies hitting fresh highs. Between May and July, there were 38,000 vacancies in the construction ...

blog header image
NEWS
TIMBER SHORTAGE DUE TO 'UNPRECEDENTED' POST-LOCKDOWN DEMAND

The price of timber has risen sharply with builders struggling to get supplies, as post-lockdown construction and DIY projects create huge demand. The Timber Trade Federation (TTF) said supplier ...

blog header image
NEWS
UK CONSTRUCTION FACES ‘PERFECT STORM’ AS SUPPLY SHORTAGES LOOM

UK construction is facing a “perfect storm” of growing skills and materials shortages as demand for building reaches record levels driven by home improvements, the housing market and new i ...

blog header image
NEWS
DEMAND FOR CONSTRUCTION WORKERS CLOSE TO 20 YEAR HIGH

The staff shortage in construction is continuing to bite, with 33,000 job vacancies for the period of April to June according to the latest figures from the Office for National Statistics. It is the s ...

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