Firm says 10% of staff across enlarged group at risk following £2.5bn deal
Barratt has warned that up to 10% of staff could lose their jobs as a result of the merger with Redrow.
Yesterday the housebuilder announced a £2.5bn deal to buy Redrow with the pair between them employing around 8,600 staff.
It said this could lead to 10% reduction in staff numbers with both employees and management affected while further cuts will be made at overlapping central support functions while more cuts will be at divisions no longer needed.
It added: “Barratt intends to look to reallocate employees from any discontinued roles arising from the integration to other appropriate new roles, growth-related new opportunities or existing vacancies, where possible.”
>> See also: Barratt’s acquisition of Redrow: the numbers and key players
The firm said it “does not intend that there will be any material reduction of building site-based employees or sales office-based employees as existing sites will continue to operate in a similar way”.
Announcing the deal, Barratt said it expected to make annual savings of £90m by the third year after completion.
It added the restructuring would be phased over 12 months following completion of the deal which still has to be rubber-stamped by shareholders and competition authorities.
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