Balfour Beatty Rail has confirmed it plans to close its Birmingham office by January 2015 and cut staff at one of its Derby offices.
A Balfour Beatty spokeswoman said the decision had been taken to close the Birmingham office due to the rail division having failed to secure some regional civils frameworks for Network Rail’s Control Period 5.
In Birmingham, the jobs of 15 employees are “currently under consultation”, Balfour Beatty said in a statement.
A total of 31 staff are employed at the Birmingham office and 16 of the roles are due to relocate to other UK Balfour Beatty Rail offices.
Following Balfour Beatty’s latest £75m profit warning, last week it confirmed it planned to close its unprofitable Croydon and Exeter offices, and the Redhill engineering services office, with staff moving to Bristol or London. The Redhill Balfour Beatty rail office will not be affected.
The contractor also confirmed there would be changes to support function roles at its Raynesway office in Derby, but the office will not be closed.
Of 21 Balfour Beatty Rail support staff based in the Raynesway office, 13 are scheduled to be relocated and eight are under consultation, Balfour Beatty said.
The rest of the Raynesway site will continue to be a base for other parts of Balfour Beatty Rail UK and the wider business. Balfour Beatty Rail UK’s other Derby office in Somercotes is unaffected.
In a trading update in January, Balfour Beatty said it was no longer bidding for Network Rail’s track renewal work.
In the 2013/14 financial year, Balfour Beatty Rail was Network Rail’s fifth-most used contractor, behind Carillion, Babcock Rail, Bam Nuttall and Costain, winning £183m of work. Balfour Beatty Civil Engineering won £89m of work and Balfour Beatty Infrastructure Services scooped £86m of work in the year.
A Balfour Beatty spokeswoman said: “Balfour Beatty Rail UK can confirm that we are currently in discussion with employees around the proposed closure of our Birmingham office and some changes to the location of our support function roles in Raynesway, Derby. This is to enable us to work more closely with our customers.
“Over half of these employees will be offered the opportunity to relocate to other Balfour Beatty Rail UK offices and we hope others can be redeployed in other Balfour Beatty Rail UK locations or to roles within the wider group.”