All 8,000 UK staff to see salaries trimmed by up to 30%
Laing O鈥橰ourke is expected to save more than 拢20m by the end of June after telling all 8,000 UK staff they will have to take pay cuts because of the coronavirus outbreak.
The firm said staff will see salaries temporarily fall between 20% and 30% in the most significant belt-tightening measure introduced yet by a major contractor. Chief executive Ray O鈥橰ourke (pictured) likened its response to the crisis to 鈥渁 war effort鈥�.
The country鈥檚 biggest private contractor did not put a figure on how much it would save but the crisis is expected to last a minimum three months, meaning the cost-saving initiative is expected to remain in place up until the end of June at least.
According to documents filed at Companies House, Laing O鈥橰ourke Services, the company which holds the employment contracts of the group鈥檚 UK staff, paid 拢390m in wages and salaries to the then 7,500 staff it had in the year to March 2019.
Based on these figures, a 20% cut across the board would generate a saving of 拢19.5m over a three month period while a 30% cut would produce a saving of just under 拢30m.
Explaining the cuts, the company said: 鈥淲e have conveyed that the company must act swiftly and decisively to protect the long-term prosperity of Laing O鈥橰ourke and its people.鈥�
A number of staff will also be furloughed 鈥� the name of initiative introduced by the government last month which sees staff put on paid leave with a proportion of their wages paid by the state.
This allows impacted employees to receive up to 80% of their salaries up to a cap of 拢2,500 per month.
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