Bovis and Redrow add to layoffs

Source: Construction Digital

Date :09/07/2008 10:41:05

The two housebuilders announced today that they will cut around 40 percent of their workforces as the credit crunch continues to bite.

Bovis said it expects around 400 of its staff will have lost their jobs since the start of the year. Redrow announced 350 job losses today and the closure of two offices, which will leave it with a workforce of around 850.

Redrow has the lowest average selling price of all the UK’s housebuilders. It said that it was facing "an unprecedented decline in the fortunes of the UK housing market."

The company went on to say that it is reviewing the value of its land and work in progress, which is likely to result in a “significant”' adjustment. Bovis on the other hand said that it does not expect to make any write-downs in its first-half results.

Taylor Wimpey, Barratt Developments and Persimmon have announced over 3,000 job losses between them in the past few days as the fallout from the subprime fiasco continues.

Redrow has lost 71 percent of its value this year and Bovis 48 percent.