Skanska UK on alert as group plans 3,000 job cuts

Aaron Morby 9 months ago
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Skanska UK is awaiting more details of a big restructuring plan that will see 3,000 job losses across the Swedish group.

This morning Skanska Group revealed it had taken a £100m hit against its main construction division to cover impairments and restructuring.

A further charge of £60m is expected in the year ahead as wholesale redundancies are delivered.

Skanska Group said part of the comprehensive restructuring plan would see the UK business operation focus on core business.

Announcing preliminary group results, the firm said: “In order to improve profitability Skanska will reduce the size of unprofitable business units and increase focus on cost control and risk management. Skanska will also make a number of organisational and leadership changes.

“Due to the unsatisfactory performance of several construction units Skanska will take the following actions: restructure the construction operations in Poland, leave the power sector in the USA, focus on the core business in the UK and continue to adapt to tougher market conditions in the Czech Republic.”

A group spokesman said it was too early to say where the cuts would be, as it would be decided as part of the consultation process that was being launched.

A UK operations spokesman, said: “We are continuing to work on improving performance across the UK operations and focusing on our core business is fully aligned with that strategy.

“As with all businesses, we maintain our headcount in line with our expectations for the business. Our order backlog remains robust, supported by a strong balance sheet and there is minimal impact to Skanska of Carillion’s situation.”

Cost savings from group construction division lay-offs are expected to amount to about £100m annually.

Group operating profit for the year at the construction division slumped from around £320m in 2016 to £100m last year.

Full annual results for the group and the newly-formed European division which now incorporates the UK business will be unveiled next month.

 

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