By Màiri Thomson
One of the world’s leading heating and plumbing distributors has announced more job cuts today as part of a restructure to help cope with the economic crisis.
Wolseley, which employs 74,000 people in 27 countries announced today that 2,300 jobs will be lost on top of the 5,000 that were cut earlier this year.
On its website the company said: “The Group expects the markets in which it operates to continue to deteriorate in the short term.
“Action will continue to be taken to right size the Group’s businesses over the remainder of this financial year.”
The group also announced that trading profit was down around 30% due to lower profitability in the market. The company’s debts have risen 8% between July and October this year, with profits down by 45%.
Chip Hornsby, Group Chief Executive of Wolseley said: “While these results reflect a further deterioration in the business environment in the first quarter it was not unexpected, and, we continue to react swiftly to market conditions with aggressive but measured cost reduction.
“In these unprecedented circumstances, the key priorities remain driving cost reduction and enhancing cash flow to ensure the Group remains compliant with its banking covenants.”
The company say they are aiming to generate annual savings of £103million whilst reducing debt to help them cope with the downturn in the housing market and building industries.