GALLIFORD Try has confirmed personnel numbers will reduce by up to 350 following a review of its construction business.
The firm announced earlier this year that it was undertaking the review, with the intention of reshaping operations to become more efficient and increase profitability.
In a trading update today, Galliford Try said plans were being implemented to ‘simplify the business and management structure and to refocus on key strengths in markets and sectors with long-term growth and profitability potential’.
Galliford Try added that it will concentrate on its ‘core strengths’ in building, water and highways, having already ceased bidding on fixed-price major projects in 2016. The restructured business’s target annual revenue will reduce to approximately £1.3 billion, generating annualised cost savings of up to £15 million from 2021.
Chief executive Graham Prothero said, “We have made some difficult decisions in response to the challenges faced by the group’s construction business. The associated operational changes are being implemented across the business. We are confident that the decision to refocus our construction activities will deliver a more stable business for the future and support improved margins.
“Our balance sheet remains strong, with guidance for average net debt for the full year unchanged.”