18 January 2024 , 09:35
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Builders' merchant Travis Perkins has admitted it axed jobs at the end of last year and hinted at additional cuts as a result of a slowdown in construction.
The firm, which also owns the Toolstation chain, made the job cuts mainly at its Northampton headquarters and central support teams, but some branch staff were also affected. Travis Perkins refused to disclose how many roles were lost and said that the review of its operations and workforce is "ongoing".
The company employs close to 20,000 people across the UK and its Toolstation business in Europe, and operates around 1,400 branches. In a bid to save £35 million yearly due to expected challenging trading conditions in the upcoming year, Travis Perkins declared it is ramping up cost-cutting efforts.
According to the company, these measures mark the "first steps" in a new turnaround plan. A year after Travis Perkins cut 400 jobs and closed 19 branches in response to larger economic challenges impacting the construction sector, the company warned: "Given that market conditions are anticipated to remain subdued into 2024, management has accelerated plans to continue the transformation of the business."
"This work commenced in the fourth quarter with a reduction in central and regional headcount alongside efficiencies realised within the group's supply chain." said the company. "These initiatives represent the first steps in a programme of planned changes to the group's operating model, which will focus on simplifying how its businesses interact with each other, reviewing the impact of loss-making activities and maximising the benefit of the group's collective scale,"
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This follows after the group cut profit guidance in October due to "challenging conditions". Travis Perkins had previously stated it was set to post underlying earnings of £175 million to £195 million for 2023, down significantly from the £236 million to £250 million expected. The firm confirmed on Thursday that it was on track with the lowered guidance after trading in the fourth quarter met expectations and pricing had stabilised, but sales by volume remained challenging.
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