Barratt Developments is set to cut 1000 jobs in the latest culling to be announced in the housebuilding sector.
The news follows the announcement this week of 900 job cuts at Taylor Wimpey, as well as 50 jobs that will go at residential and commercial developer Ballymore.
Barratt told staff yesterday that it would cut about 15% of its workforce. The housebuilder employs 6,700 staff.
Today, the housebuilder confirmed it was to re-size, dropping the number of divisions from 32 to only 26.
Barratt said it would close its Sheffield and
It will also merge eight divisions into four. These will be; David Wilson North and Barratt Leeds, Barratt East Midlands and David Wilson North Midlands, Barratt Southampton and David Wilson Southampton and Barratt North Scotland and Barratt East Scotland.
The company has already closed three divisions in the last 18 months and cut nine divisions after its purchase of Wilson Bowden in April 2007.
A Barratt spokesman said: “Naturally we need to manage our overheads and we are the only housebuilder with a June financial year end so this is a natural point to reshape. We are now engaged in a full consultation and our number one priority is to maintain core skills.”
Barratt’s shares have plummeted 97% since their peak in January 2007. However, shareholders seem to have liked this morning’s news with Barratt’s stock climbing 1.8% to 42.25p.
Barratt is due to give a trading update on Thursday.
Investors will be watching for any comments on its net debt position.
A month ago, Barratt was forced to reassure shareholders that it was not in danger of breaching its loan covenants after its stock had fallen as much as 38% in a matter of days.
