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Travis Perkins has made cuts to its headcount following a fall in profit in 2023.

The builders鈥� merchant made an operating profit of 拢180m in the 2023 financial year, down from 拢295m in 2022 and 拢353m the year before.

It said it had started work in the fourth quarter of last year on a 鈥渞eduction in central and regional headcount alongside efficiencies realised within the Group鈥檚 supply chain鈥�.

The firm said in its latest trading update that the move would save around 拢35m, and result in a one-off restructuring charge of around 拢15m in the 2023 financial year. 

The UK鈥檚 largest builders鈥� merchant employed over 20,000 people in 2022, with more than 1,400 branches and sites.

But the building materials market has been hit by a series of rolling challenges in recent years, including high inflation caused by the fallout of the covid pandemic and Russia鈥檚 invasion of Ukraine.

鈥淥ver recent years the Group鈥檚 strategy has focused on streamlining operations, modernising technology and infrastructure and establishing the drivers of future growth,鈥� the update said. 

鈥淕iven that market conditions are anticipated to remain subdued into FY24, management has accelerated plans to continue the transformation of the business.鈥�

The update said the restructure represents the 鈥渇irst steps鈥� in a programme of planned changes to the group鈥檚 operating model, which will focus on 鈥渟implifying how its businesses interact with each other, reviewing the impact of loss-making activities and maximising the benefit of the Group鈥檚 collective scale.鈥�

鈥淭ogether these changes will deliver further operational efficiencies, enhance cash generation and strengthen financial resilience over the medium term,鈥� the firm added.

Travis Perkins posted revenue of nearly 拢5bn in its latest full accounts to 31 December 2022, up from around 拢4.6bn in 2021. Its full year results will be published in early March.