Builder’s managers wait for axe to fall

May 24 2008 by Graeme King, The Journal

HOUSEBUILDER Taylor Wimpey has refused to comment on reports it is cutting staff right across its business – beyond the closure of 13 of its 39 divisions nationwide.

The country’s largest housebuilder said on Tuesday this week it was to cut a total of 600 jobs at a time when the whole of the housebuilding sector is struggling to sell homes.

Those job losses, 10% of the company’s UK-wide workforce of 4,700, were expected to come from the 13 divisions earmarked for closure, with Taylor Wimpey’s Sunderland and Stockton offices escaping cuts.

But The Journal has learned Taylor Wimpey managers in the North East have been consulted about taking redundancy and are waiting to hear where the axe will fall.

Peter Redfern, chief executive of Taylor Wimpey, said this week: “Our experience in the US and historically in the UK is that when housing markets slow, those that react most quickly and decisively become stronger businesses, and provide the most secure and positive environment for their continuing staff.”

Taylor Wimpey reported a pre-tax loss of £19.5m in 2007, against profits of £405.6m a year earlier.

A spokeswoman for Taylor Wimpey yesterday refused to comment on reports of jobs losses outside the 13 divisions set to close.