Barratt plans office closures in bid to cut costs

Barratt is set to close five offices around the country following its £2.5bn takeover of rival housebuilder Redrow. The closures are part of Barratt Redrow’s planned £90m in cost savings as it integrates the two businesses. The company said in a stock market update that it has reviewed its geographic coverage and office structure to optimise the divisional network of the combined group, but a spokesperson declined to give details of which offices and regions will be affected.  Earlier this week, the company launched a collective consultation on the proposed closure of the five offices. If confirmed, these closures will generate annualised run rate cost savings of £19m with £9m accruing in the fiscal year 2025. Subject to employee consultation, Barratt anticipates that the integration programme will result in the closure of nine divisions. The spokesperson said: “With the combination of Barratt and Redrow, we have carefully reviewed our existing office structures and geographic coverage so that we can combine our two companies in the most effective way possible. Our sites will not be affected, and all employees impacted by these proposals have been informed – we will commence a period of collective consultation with employees and are working closely with our teams to support anyone affected by these changes.” As part of the cost synergies, Barratt will also make procurement savings of £34m and will consolidate duplicated central and support functions, saving £23m. This includes the rationalisation of board positions, senior management as well as PLC and other third-party related costs. Image © Jeff Blackler/Shutterstock