Job losses loom as Skanska UK restructures

Grant Prior 6 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

Construction bond bombshell as major player quits market

QBE currently provides cover for 20 of the industry's 30 biggest contractors
7 hours ago

Balfour seals £192m deal for trio of Scottish substations

Work to start this summer to enhance electrical transmission in Argyll
6 hours ago

United Utilities names another 18 winners for £2.7bn water spend

Water giant cuts out large management contractors in latest spending round
1 day ago

Green light for £130m Dundee Eden project

Former gasholder site to be transformed into green house
7 hours ago

Four tower scheme in Glasgow gets green light

Go-ahead for major mixed-use scheme at Central Quay
7 hours ago

‘Green collar’ construction workers earning £134,000

Cost consultant T&T says insulation and heat pump trades earning £70 an hour in London
7 hours ago

£65m Trafford Waters resi blocks approved

X1 Developments plans over 200 homes in 13- and 8-storey blocks
7 hours ago

Over 100 firms win £1.5bn ICN housing framework

Great Places Housing Group names key partners for new homes programme
1 day ago

Steelwork firm went down owing £4.5m to suppliers

Subcontractors left holding unpaid invoices from SH Structures
1 day ago

Scottish civils firm to buy stake in piling specialist

Advance Construction in talks for 25% stake in Northern Piling Ltd
1 day ago

RSK secures £500m for fresh acquisitions spree

Acquisitive group aims to buy another 200 businesses by 2030
2 days ago

Beal Homes gets green light for £105m Humber scheme

Work to start on more than 500 homes in North East Lincolnshire
1 day ago

RED wins £20m East London office refurb

Grade II listed Victorian building to be upgraded to Cat A offices
1 day ago

Employee-owned Neilcott staff share £250,000 payout

Employee-owned building contractor sales jump 38% to £139m
2 days ago

Geoffrey Osborne supply chain hit for £26m

More than 500 suppliers and subcontractors left holding unpaid bills
5 days ago

Race for £800m South West Wales framework

Up to 16 firms face fight to renew spots on regional contractors framework
3 days ago

SME contractors agree 4% pay rise for site workers

Workers will also get an extra day of holiday
5 days ago

South East expansion paying off for Meldrum Group

Turnover up to £55m as North East based contractor expands national coverage
2 days ago

Wates boosts paternity leave to 12 weeks

Latest leave benefits apply from first day of working for contractor
2 days ago

Taylor Wimpey chief honoured with CBE

Jennie Daly recognised in King's Birthday honours
4 days ago

Labour to mothball £320m A27 job to fix potholes

Manifesto confirms Arundel Bypass canned as "poor value for money"
5 days ago

Lendlease’s £1.9bn Smithfield Birmingham scheme approved

Initial work to start later this year despite questions over Lendlease's degree of involvement
5 days ago

Crest Nicholson rejects £650m Bellway bid

Second Bellway approach rebuffed
6 days ago

Hill submits £800m East London estate rebuild plan

Over 1,900 homes to be built in five phase at Teviot Estate in Poplar
6 days ago

Plan approved for 8,500-seat Edinburgh indoor arena

Construction expected to start next year once a contractor is appointed
5 days ago

Statom starts on £25m Bristol Airport precast car park

Major work package on transport upgrade being overseen by Griffiths Farrans JV
6 days ago

Build problems plunge Crest Nicholson to a £31m loss

House builder unearths more defects on completed sites
6 days ago

Rebooted Amey lifts contract win rate to 1 in 3 bids

Amey chief says firm exceeded expectations in first year under new owners
6 days ago

BAM Nuttall fined £2.3m after worker drowned

Court hears how series of safety failures led to tragedy
7 days ago

OCU buys Scottish civils contractor RJ McLeod

Deal takes multi-utility infrastructure specialist revenue to over £800m
1 week ago

Contractor services