Balfour Beatty is set to restructure its construction services business into three divisions: Major infrastructure; regional mechanical and electrical and regional civil engineering and building.
The contractor will unveil a new senior leadership team at the end of May to oversee what it described as a “transition period” to run through to January 2013.
The existing management team across its construction services UK operating companies will remain in place during this period.
Its UK operation consists of Balfour Beatty Construction Scottish & Southern, Balfour Beatty Construction Northern, Balfour Beatty Major Civil Engineering, Balfour Beatty Regional Civil Engineering, Mansell and Balfour Beatty Engineering Services.
Balfour Beatty revealed it expects approximately 650 roles to be made redundant as part of the process, but said that no operational employees involved in project delivery will be affected.
Balfour Beatty Construction Services UK chief executive Mike Peasland said: “This operating model will sharpen our focus on growth sectors and ensure the seamless integration of our capabilities for our customers as well as giving us the opportunity to create a more efficient structure.”
The company confirmed it planned to make £50 million of savings by 2015 when it posted its 2011 results in March.
It had warned that job losses could be a consequence of its restructure, and the contractor had always insisted front line staff would not be affected.
- Balfour Beatty in 2012:
- May: Reveals Andrew McNaughton will become deputy chief executive at the end of June, following the retirement of Anthony Rabin
- May: Named preferred bidder for £127m Midland Metro scheme
- April: Shortlisted among four for £500m Bank station upgrade
- April: CN reveals it has been appointed to £1bn MoJ framework
- March: Reports a nine per cent rise in profits to £334m on £11 billion of revenue in year to 31 December 2011
- March: CN reveals it is top of the academies pile, with nine wins
Balfour Beatty said:
The changes will ensure that we increase our focus on the needs of our customers and on growth sectors, and that we enhance our leading market position, while emerging from the current downturn in UK construction as a more operationally efficient business.
The new business will operate through three business streams and will better integrate our service offering to customers. Centralised support functions will also be introduced. This model, which will become operational from January 2013, consists of:
Major infrastructure - focused on complex projects in key sectors such as energy and transportation.
Regional mechanical & electrical - across all sectors.
Regional civil engineering and building - providing locally delivered, flexible and fully integrated civils and building services through partnerships and frameworks to our strategic customers.