British home builder Persimmon to shed 1,100 jobs
Home builder Persimmon said that job cuts would eventually amount to about 1,100 since the start of the year as it battles a downturn to the housing market in Britain.
By Agencies |
LONDON: Home builder Persimmon said on Tuesday that job cuts would eventually amount to about 1,100 since the start of the year as it battles a downturn to the housing market in Britain.
"The first six months of this year have undoubtedly been the most challenging period in Persimmon's recent history," the group said in a statement to the London Stock Exchange.
"The significantly reduced availability of mortgage funds and a reduction in consumer confidence is restricting the level of sales activity and the volume of total housing transactions across all markets in the UK," it added.
The news of job losses at Persimmon comes a week after Taylor Wimpey, the biggest home builder in Britain, said it was axing 900 British jobs because of a weak housing market.
Persimmon said of its own job cuts: "Due to the likelihood of the poorer market conditions continuing we have taken further steps to restructure our business and reduce overheads to a level which is more appropriate to our medium term expectations of annual new home sales volumes."
It added: "We commenced this further restructuring of our business in May, and it is now almost complete. It will result in the loss of circa 1,100 salaried staff in total since the beginning of this year."
Persimmon said the restructuring process would generate a cash saving of about 45 million pounds (57 million euros, 89 million dollars) per year.
"The first six months of this year have undoubtedly been the most challenging period in Persimmon's recent history," the group said in a statement to the London Stock Exchange.
"The significantly reduced availability of mortgage funds and a reduction in consumer confidence is restricting the level of sales activity and the volume of total housing transactions across all markets in the UK," it added.
The news of job losses at Persimmon comes a week after Taylor Wimpey, the biggest home builder in Britain, said it was axing 900 British jobs because of a weak housing market.
Persimmon said of its own job cuts: "Due to the likelihood of the poorer market conditions continuing we have taken further steps to restructure our business and reduce overheads to a level which is more appropriate to our medium term expectations of annual new home sales volumes."
It added: "We commenced this further restructuring of our business in May, and it is now almost complete. It will result in the loss of circa 1,100 salaried staff in total since the beginning of this year."
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Persimmon said the restructuring process would generate a cash saving of about 45 million pounds (57 million euros, 89 million dollars) per year.
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