G4S to axe 1,100 jobs

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The Independent Online

The G4S chief executive Nick Buckles conceded for the first time yesterday that his job was at risk in the wake of the Olympic security debacle that cost the company £50m.

While some shareholders have publicly backed him in the wake of the fiasco, citing his track record, the views of the G4S chairman John Connolly are less clear.

Mr Connolly joined the board only in June and is said by some to have been alarmed at how quickly the Olympics issues spiralled out of control. An internal review headed by Mr Connolly will report back in a few weeks' time.

The Olympics issue aside, the half-year results were reasonably strong. Revenues were up 5.8 per cent to £3.9bn, while profit was dead flat at £236m.

The £50m figure for the Olympics is at the top end of the company's estimated losses for failing to recruit enough of the guards it had promised for the event.

In an attempt to save £30m and to recoup these losses, it will axe 1,100 jobs, of which 100 are in the UK.