New boss Graham Prothero pulls trigger following losses on problem jobs
Galliford Try is culling around one tenth of its UK construction and investments staff after losing tens of millions of pounds on two problem jobs in Scotland.
Britain鈥檚 eighth largest construction firm has started a process of statutory consultation which will see 350 jobs shed over the next three months.
The cuts are the first major act by new chief executive Graham Prothero, who has already announced a review into the firm after taking the job in March.
Prothero previously served as group finance director at the firm, overseeing a 拢157m rights issue last spring.
Now he is cutting construction jobs across the UK 鈥� although streamlining will be concentrated in Scotland where both problem schemes, the Queensferry Crossing (pictured) and the Aberdeen Western Peripheral Route, have now been completed.
While Galliford鈥檚 Scottish arm Morrison will continue to work on schools, hospitals and other construction jobs, all Scottish infrastructure operations 鈥� except those to do with water 鈥� are to be wound up.
Linden Homes, Galliford Try鈥檚 housing arm, will not be affected by the changes.
Last month the contractor admitted a fresh 拢40m loss on the Queensferry Crossing scheme, completed in 2017 for Transport Scotland, after encountering delays because of high winds.
And it continues to negotiate with the same client after finally finishing the Aberdeen bypass with JV partner Balfour Beatty in January 鈥� months after schedule, and more than 拢100m out of pocket.
A spokesperson for Galliford Try described the job losses as a 鈥渞egrettable but unavoidable step,鈥� adding: 鈥淎s a business we are confident that the proposed structure we are looking to put in place will provide us with robust foundations and leave us better suited to face the key markets where our future success lies.鈥�
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