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

Gleeson chops 42 staff from construction arm

Contractor sheds employees in restructuring move designed to protect the firm from high-risk jobs

NEW YEAR cheer was thin on the ground at Gleeson as the contractor axed 42 jobs during an overhaul of its struggling construction division.

The redundancies followed a restructuring of the business led by managing director Andrew Muncey and his team of regional bosses.

A Gleeson spokeswoman said the firm was getting rid of 33 office-based employees - including administration staff, middle management and design managers - across five regions.

And a further nine employees working on Gleeson's £60 million Evelina children's hospital project in central London will also be made redundant when the scheme, which is heavily behind schedule, is completed.

Gleeson began making the cuts last month and the process will run until the end of January.

The spokeswoman added that no further redundancies were planned among Gleeson's total of 800 employees and site operatives.

The company announced to the City in November that it had put aside £5 million to cover restructuring and redundancy costs under the move.

Pre-tax profits at Gleeson hit £17.6 million for the year to June but this was almost entirely due to a strong performance from the contractor's house building operation. Construction margins stood at a measly 0.3 per cent.

Gleeson said it wanted to reduce the risk levels of the construction division and reduce turnover by £50 million by making fewer bids.

It announced initial plans to close two of its nine offices, merging them into one business called Gleeson Building.

But the spokeswoman said that the management team overseeing the restructuring of the business had not yet decided which offices would close - nor whether any would close at all.

She said: 'I don't know yet, they are all being kept up at the moment and they might decide that they don't have to close any.There will be a decision sometime in the New Year.'

Gleeson has offices in Cheam, Surrey, Nottingham, Newcastle, Manchester, Sheffield, Leeds, Northampton, Birmingham and Cambridge.