400 staff go in first phase of Balfour cost cuts

Grant Prior 9 years ago
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Balfour Beatty made 400 staff redundant during the first half of this year as part of its ongoing cost-cutting drive.

The figure was revealed by chief executive Leo Quinn during the company’s half-year results presentation on Wednesday.

Quinn is looking to cut £100m of costs from the business by the end of next year as part of Balfour’s Build to Last turnaround strategy.

Balfour is now a quarter of the way through that programme having made £25m of savings so far.

The job losses have been focused on back office functions like IT, HR, Legal and Finance.

Balfour said: “Significant progress has been made to streamline the enabling functions within the Group, with new senior leadership in place for Finance, IT, Health and Safety, Legal, Communications and Investor Relations, Risk and Assurance and Procurement across the organisation.

“The changes reduce costs where services have previously been duplicated in more than one business unit and ensure that best practice is delivered across Balfour Beatty in a consistent way.

“A significant legacy of the rapid growth of the Group by acquisitions over the last 10 years has been multiple IT platforms.

“Therefore a key focus has been the rationalisation of IT systems and hardware across the UK business.

“The hardware implementation is now approximately 95% complete with the removal of the legacy email platforms to be completed by September.

“In the medium to long-term this rationalisation will  lead to a lower cost to serve Balfour Beatty’s IT needs and greatly reduce the volume of issues experienced by the workforce, increasing their productivity.

“A new focus on procurement across the Group ensures that Balfour Beatty is positioned to negotiate the best arrangements with suppliers. Disciplined use of preferred suppliers will lead to a stronger supply chain with improved competitiveness, margin and cash flow.”

 

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