GALLIFORD TRY PUTS 350 CONSTRUCTION JOBS AT RISK
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