Job losses loom as Skanska UK restructures

Grant Prior 7 years ago
Share

Skanska is planning a major restructuring of its UK business which could see up to 100 jobs lost.

Briefings started for affected staff this week and Skanska’s 6,000 employees were told about the changes this morning.

The Enquirer understands that entire management teams will be made redundant during the restructuring with job losses set to begin later this month.

Skanska said the move is “part of its focus on core business.”

It follows a £32m writedown at the UK business last year and is part of a wave of 3,000 redundancies across the European construction division which racked-up a £90m loss last year.

All of Skanska UK’s building expertise will be merged into two organisations – one focusing on construction and the other on building services.

Skanska’s two building operations which formerly separated on a geographical basis will be brought together into one organisation, with Steve Holbrook as managing director.

The company is also bringing together its facilities services operation and its mechanical and electrical engineering business into one building services organisation.

The managing director will be Adam McDonald, formerly commercial director for Skanska’s mechanical and electrical engineering operation and, currently, the managing director for its facilities services organisation.

Skanska is also making changes in its infrastructure business.

Andrew English becomes the new managing director of its infrastructure operations, taking over from James Richardson, who will assume the role of managing director for Skanska’s work on HS2.

English spent four years as commercial director for the company’s civil engineering operations, before taking up his most recent position as managing director of Skanska’s utilities business.

Peter Walsh becomes the new managing director for Skanska’s utilities business.

He is currently executive director at Skanska, having joined the company in July 2017 from Amey, where he was operations director within the water sector.

Executive vice president, Katy Dowding, will add the facilities services operation to her executive responsibilities, which cover building and building services.

Executive vice president, Martin Neeson, will add Skanska UK’s development business to his existing executive responsibility for the company’s utilities and cementation operations.

Gregor Craig, president and CEO, Skanska UK said: “We are proposing these changes to simplify our structure, making it easier for customers to do business with us.

“These measures will also make us more efficient. Customers will experience a seamless transition to the new structure, with no impact on the standard of service provided.”

“Skanska is a resilient and stable business with a strong balance sheet.

“We have some excellent and exciting opportunities ahead of us and this sharper focus means we will be in a better position to maximise them.”

One stunned manager told the Enquirer: “I’ve just come out of a meeting and heard that my job will be going during this major restructure.

“They haven’t put a number on the job losses but I’d say it will be up to 100 as whole teams of people will be wiped out.”

Last month Skanska’s European construction division – which includes the UK, Poland and Czech Republic businesses -suffered a £90m loss for last year.

Group chief executive Anders Danielsson said 3,000 people would be leaving the business with 2,500 going in Poland and the rest of the redundancies “spread around”.

The firm also confirmed a £32m writedown at the UK division due to project delays and lower production rates.

Latest news

Willmott Dixon wins Great Yarmouth waterfront deal

North Quay 10.5 acres mixed-use scheme to advance
15 hours ago

Care home fire trial collapses

Prosecution withdrawn against four firms including Morgan Sindall Property Services
15 hours ago

Eight take key spots on £250m Prosper framework

Housing and public building upkeep deal for North East awarded
15 hours ago

McLaren storms April contracts league with flurry of wins

Cardiff Bay Arena job headlines a series of big contract wins
19 hours ago

Balfour Beatty lifts cash forecast after strong first quarter

Contractor set to hit £1bn average monthly net cash in 2025
19 hours ago

Goldman Sachs-owned Adler & Allan buys 180-strong civils outfit

West Country's Glanville Environmental gets new owner
19 hours ago

Caddick lands first contract for £200m Skelmersdale revamp

Developer gets green light for masterplan
20 hours ago

Van Elle sells HGV fleet to haulage firm

WS Specialist Logistics pays £2.9m to take on fleet and drivers
19 hours ago

Buyers more bullish about prospects for year ahead

Residential "resilient" but commercial work a weak spot
2 days ago

Council backs first Brutalist car park-to-flats scheme

Newcastle-under-Lyme multi-storey car park to be reborn as pioneering homes scheme
2 days ago

Hinkley Point C hits peak build with 26,000 jobs

3,000 more workers to join as fit-out work ramps up
2 days ago

Over 40 firms win Wessex Water M&E minor works deal

Broad sweep of specialists picked for AMP8 programme
2 days ago

Spencer lands Scottish bridge hat-trick

Steelwork, gantries and bearing upgrades on Kessock, Forth and Tay crossings
2 days ago

Winners revealed for £1.5bn decarbonisation deal

Fusion21 confirms places for 40 firms: Full list
2 days ago

Cladding firm fined £225,000 after fatal fall

Court hears how cherry picker didn't reach all parts of repair job
2 days ago

Early call-out for Ebbsfleet Garden City infrastructure

Bidders day to set out plan for Ebbsfleet Central commercial scheme
2 days ago

Completed buildings caught-up in Gateway 2 chaos

Developer distraught after dealing with Building Safety Regulator
3 days ago

Aviva submits plans for 34-storey City office tower

Subject to planning work to start in autumn 2027
3 days ago

Murphy takes 40% stake in Aussie civils contractor

Firm enters Australasian market with stake in Sydney-based contractor Abergeldie
3 days ago

Moat seeks firm for £420m repairs and maintenance deal

15-year deal to upkeep 20,000 south east homes
3 days ago

Lynch takes over hotel for Sizewell plant operators

Hire giant now in the hotel business to guarantee accommodation for workers
3 days ago

Subcontractors wanted across Scotland

Latest Constructionline event in Glasgow: Register now
3 days ago

Six guilty of £2m bribery over Devon housing site deals

Corrupt building bosses and E.ON project chief and QS sentenced
1 week ago

1,650 former ISG staff launch legal claims

Redundancy Payment Service facing payout of more than £9m
1 week ago

Plans lodged for £1bn cancer research centre in Sutton

London Cancer Hub will deliver around 1m sq ft of lab and research space
7 days ago

London Met Uni seeks firm for £284m estate revamp

Contractor wanted to deliver capital works and FM
7 days ago

Delayed £2bn estate rebuild back on as Berkeley signs deal

Birmingham council development agreement paves way for 2028 Ladywood start
1 week ago

Tilbury Douglas boosts margin to 2.1% as profits double

Firm targets 3.5% margin by 2029 under new business plan
1 week ago

Subbies battle for fastest bricklayer title

Winchmore management team go back on the tools
1 week ago

Green light for revised McLaren Reading revamp

Mixed-use plans to transform Broad Street Mall site
7 days ago

Contractor services