Travis Perkins reveals year-end job losses and signals further staff cuts
The firm is ramping up cost-cutting efforts to save about £35 million a year amid a construction sector slowdown.
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Your support makes all the difference.Builders’ merchant Travis Perkins has revealed it axed jobs at the end of last year and signalled further cuts as it slashes costs in the face of a construction slowdown.
The group, which also owns the Toolstation chain, said the job cuts were made in the final three months of 2023, largely across its Northampton headquarters and central support teams, but also with some staff impacted in its branches.
Travis Perkins declined to say how many jobs went in the cull and warned that the review of operations and its workforce was “ongoing”.
The firm employs close to 20,000 staff across the UK and its Toolstation business in Europe, and has about 1,400 branches.
Given that market conditions are anticipated to remain subdued into 2024, management has accelerated plans to continue the transformation of the business
Travis Perkins said it was ramping up cost-cutting efforts to try to save about £35 million a year as trading is set to remain difficult in the year ahead.
The measures taken at the end of last year mark the “first steps” in a new turnaround plan, according to the company.
It comes a year after Travis Travis Perkins axed 400 jobs and shut 19 branches at the end of 2022 as wider economic woes began taking their toll on the construction sector.
Travis Perkins said: “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.”
“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,” it added.
It comes after the group slashed profit guidance in October, flagging “challenging conditions”.
Travis Perkins said at the time it was set to post underlying earnings of £175 million to £195 million for 2023, down sharply on the £236 million to £250 million expected.
The firm said on Thursday that it was on track with the lowered guidance after trading in the fourth quarter was in line with expectations and that pricing had stabilised, but that sales by volume remained challenging.