Friday July 4, 04:29 PM
Builder Confirms Huge Job Cuts
By Sky News
Housebuilder Barratt Developments has confirmed plans to axe 1,000 jobs as it struggles with a slowing housing market. The move comes two days after rival Taylor Wimpey announced plans to shed 900 staff and close 13 offices.
Other firms
in the sector are also struggling. Galliford Try, the construction group, is axing 256 jobs in its housebuilding division in response to the weaker property market.
And Ballymore, the residential and commercial developer, said it was cutting 50 jobs - more than 10% of its workforce - as part of a management shake-up.
The housing market has been hit hard as banks have cut back on mortgage lending to would-be buyers to stem losses caused by the credit crunch.
Barratt's share price has plunged by 97% since its peak in February 2007 and it has been relegated from the FTSE 100 Index of Britain's leading firms.
It has reportedly summoned staff to meetings where they were told that consultation over job losses would begin.
Management is said to be looking to cut about 15% of the 6,700-strong work force with job losses expected in most areas.
Barratt has been under pressure since the takeover of rival Wilson Bowden last year at the top of the market.
It is currently burdened with around £1.7bn debt from the acquisition.
Under the reorganisation plans the group will merge eight of its offices into four, leaving it with 26 regional offices.
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