Persimmon sheds 1,100 jobs

Source: Construction Digital

Date :08/07/2008 11:53:50

The troubled housebuilder said that it has laid off 1,100 staff so far this year as the credit crunch claims another high profile victim.

The news means that Persimmon has added to the 2,000 job cuts announced last week by rivals Taylor Wimpey and Barratt Developments.

In a trading update today, the company said that the past six months had "undoubtedly been the most challenging period" in its recent history.

Persimmon is one of the UK's biggest housebuilders, but still saw half -year sales revenues down by more than a third to £1 billion.

Reductions

By making the cuts, which amounts to roughly 20 percent of its workforce, the company is hoping to save will save £65 million per year.

“We have reappraised our business in the light of the significant change in trading conditions and have taken action to address the new challenges presented,” it added.

“We now have a lower level of overheads and structure appropriate for the current levels of business, whilst at the same time remaining well placed to achieve an increase in output whenever mortgage availability and the overall market improves.”