Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

More Skanska UK redundancies as second consultation begins

Skanska UK will make another wave of redundancies as the company begins its second consultation with staff as part of a group restructure.

The company confirmed it had now entered a “collective consultation with staff” as part of reorganisation of the company’s building division.

A spokesman for the firm said: “Skanska has entered into a collective consultation process with its staff, following a strategic business review and its previously announced intention to re-organise its building and building services operations.”

The company would not give details on the number of staff being consulted.

This is the latest round of redundancies at the company after revealing in March that a number of employees had left the business as part of restructure.

Earlier this year, Skanska UK decided to separate its building and building services arms into two divisions to sit alongside its infrastructure arm.

Commenting on the latest consultation, Skanska CEO and president Gregor Craig said: “We have taken this action so that we are in the best position to provide the service that our customers are asking for, as well as build on our robust order book, strong balance sheet and solid cash position, ensuring that we have a sustainable business that is fit for the future.’”

The restructure has come off the back of a wider re-organisation of Skanska’s global business, which is expected to see more than 3,000 staff let go.

The restructure followed declines in profit due to weak performance across several construction units in Europe, as well as a slowdown in European infrastructure development.

Last month Skanska Group reported a year-on-year fall in group operating profit of 66 per cent to SEK 639m (£53.6m) for the first three months of 2018.

The restructure also coincided with Skanska pulling out of the race to build the £1bn Silvertown Tunnel project in March.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.