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

Barratt cuts a further 700 jobs

Barratt has cut a further 700 jobs over the last six months in a bid to cope with the recession.

Barratt chief executive Mark Clare said the group had now made 1,900 job cuts in the last six months after reporting a near £600 million loss today.

Around 1,200 cuts were made in July following a restructuring exercise with the 700 cuts since then coming as developments have finished on site.

Mr Clare said: “As we continue to see site numbers fall, I would expect a continuing reduction in our headcount, until such time as we start to open new sites.”

A further £80 million of production cost savings will be made by Barratt this year.

“It is an extremely difficult market categorised by a lack of mortgage finance,” said Mr Clare.

“The number of mortgage products out there has fallen 75 per cent. We have had to work very hard to convert visitors into sales.

“Our strategy continues to be driving sales, cutting costs and reducing debt.

“We haven’t factored for a market recovery. It is better to run the business as if there will be no recovery. We need to make that recovery ourselves.”

Barratt made £495 million of writedowns based on a site by site review and factoring in an average fall in house prices of 27 per cent from the peak of the market in 2007 to the trough.

The majority of the writedowns relate to city centre flat developments outside of London.

But bosses said trading right up to last week, since the start of the year has been not bad.

The house builder has sold an average of 250 properties a week and visitor rates are up 24 per cent on last year.

Barratt now has 12,000 people pre-registered for the Government HomeBuy direct scheme where the house builder and state share the deposit requirement to help first buyers onto the market.

Mr Clare added: “I am not saying there are green shoots, but there does seem to be some signs of life in the market.”