Building supplies firm Wolseley to shed 2,000 jobs
Plumbing and building supplies firm Wolseley today announced plans to cut 2,000 jobs and close more than 200 branches in the UK and Ireland.
The Reading-based firm, which trades as Plumb Center and Build Center, said the moves reflected its expectations for a further decline in trading. The company also shed 5,050 positions between August and the end of October, mainly in North America.
Wolseley, which operates more than 1,900 branches in the UK and Ireland, said the latest job cuts would be phased over the next few months.
Wolseley's headcount reduction is one of the biggest in recent days, after a raft of UK companies including BT, JCB, truckmaker Leyland, Virgin Media, Yell and GlaxoSmithKline all announced plans to shed labour.
Many more job losses are predicted, with increasingly dire predictions about the jobless total. Business groups are constantly revising their expectations up, with some now believing unemployment will go over three million.
The job cuts at Wolseley's UK and Ireland division are expected to reduce annual costs at the company by £80 million.
The pressure on Wolseley to reduce overheads was highlighted by first quarter figures today, with group trading profits down 30 per cent due to lower profitability at its UK and American operations.
The company said: "Our objective remains to ensure the appropriate sizing of the cost base in line with the expected market environment."
Wolseley said revenues in the UK and Ireland division decreased by about 10 per cent with trading profits down by around 65 per cent in the three months to 31 October.
The company said its building materials brands such as Build Center and Brooks in Ireland continued to be affected by the rapid deterioration in new residential construction.
The company's consumer-focused business Bathstore also reported a significant deterioration in revenues in the first quarter.
However, Wolseley said Plumb Center continued to show resilience, with more than two-thirds of revenues coming from the residential repair and maintenance market.
- 1 iOS 8 apps and features: eight iPhone settings you need to look at after you install the update
- 2 Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
- 3 'F*ck it, I quit': TV reporter Charlo Greene quits live on air in spectacular fashion
- 4 Scotland could still declare independence – even without referendum, says Alex Salmond
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Rihanna 'nude photos' claims emerge on 4Chan as hacking scandal continues
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
Khorasan: Muhsin al-Fadhli - the man leading a terror group more feared by US officials than Isis
'F*ck it, I quit': TV reporter Charlo Greene quits live on air in spectacular fashion
Alicia Keys leaks nude photo 'to create a kinder and more peaceful world'
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...
£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...
Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...