Skanska’s UK is awaiting more details of a major restructuring plan that will see 3,000 job losses across the Swedish group.
This morning Skanska Group revealed it had taken a £100m hit against its main construction division to cover impairments and restructuring.
A further charge of £60m is expected in the year ahead as wholesale redundancies are delivered.
Skanska Group said part of the comprehensive restructuring plan would see the UK business focus on core business.
Announcing preliminary group results, the firm said: “In order to improve profitability Skanska will reduce the size of unprofitable business units and increase focus on cost control and risk management. Skanska will also make a number of organizational and leadership changes.
“Due to the unsatisfactory performance of several construction units Skanska will take the following actions: restructure the construction operations in Poland, leave the power sector in the USA, focus on the core business in the UK and continue to adapt to tougher market conditions in the Czech Republic.”
A spokesman told the Enquirer: “It is too early to say where the cuts will be, this will be decided as part of the consultation process that is being launched.”
Cost savings from these lay-offs are expected to amount to about £100m annually.
Group operating profit for the year at the construction division slumped from around £320m in 2016 to £1oom last year.
from Construction Enquirer http://www.constructionenquirer.com/2018/01/17/skanska-uk-on-alert-as-group-plans-3000-job-cuts/
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