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Skanska UK cuts jobs in divisional restructure

Skanska UK has confirmed redundancies have been made as the business restructures into three divisions.

The company is separating building and building services into two divisions to sit alongside its infrastructure arm, which bosses claim will improve Skanska’s customer service.

A Skanska spokesperson confirmed that some employees have already left the business as part of the restructuring, but they could not confirm whether more jobs would go.

Changes to the UK business are part of a wider global restructuring following a 66 per cent decline in operating profit in 2017, which Skanska revealed in its annual results last month.

The group also confirmed that approximately 3,000 jobs would be cut in the business, with most of those occurring in its Polish operations.

Skanska UK chief executive Gregor Craig said: “We are proposing these changes to simplify our structure, making it easier for customers to do business with us.

“These measures will also make us more efficient. Customers will experience a seamless transition to the new structure with no impact on the standard of service provided.”

The building division will now be overseen by MD Steve Holbrook, while the building services operations will be headed up Adam McDonald, who is currently the MD for facilities services.

Skanska will also make changes to its infrastructure business, with Andrew English, previously commercial director for civil engineering, appointed MD of infrastructure operations.

He takes over from James Richardson, who moves to become MD of the firm’s HS2 work.

The utilities business also has a new MD in Peter Walsh, who joined Skanska in July last year having been operations director for water at Amey.

Mr Craig said: “Skanska is a resilient and stable business with a strong balance sheet.

“We have some excellent and exciting opportunities ahead of us and this sharper focus means we will be in a better position to maximise them.”

The restructuring will formally start on Monday and is expected to take a number of weeks to complete.

This article has been amended to reflect the fact that Skanska UK is restructuring into three divisions, rather than two

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