Stagecoach planning job cuts in downturn

Dec 4 2008 by Peter McCusker, The Journal

RAIL and bus operator Stagecoach is planning job cuts in response to the likely fall in demand on commuter routes.

The company, which operates thousands of buses across the UK, including the North East, said it was reviewing the cost base of its UK rail business, with cuts most likely to be made in support services and administration. It said it was too early to comment on how many jobs might be lost.

Stagecoach said its rail operations, which include South West Trains and the Virgin Rail joint venture, were more susceptible to changes in economic conditions and that it expected to see downward pressure on rail profits in the 2009/10 financial year. In half-year results published yesterday, Stagecoach said rail operating profits were £31.7m, up from £25.3m a year earlier.

Chief executive Brian Souter said: “The short to medium term outlook for our UK rail operations is challenging and in anticipation of a further deterioration in economic conditions, we are taking action now to ensure our rail businesses remain competitive.”