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News: House Builders Announce Massive Job Cuts

Wed, 09 Jul 08

New homes are set to be in short supply after a raft of house builders announced massive job cuts and a significant scaling back of activity.

The downturn in the housing market and plummeting land prices are to blame for the cuts say the firms affected, including Persimmon, Bovis Homes and Redrow.

Both Bovis Homes and Redrow are set to cut their workforce by around 40% and Persimmon has slashed around 1,100 jobs since January, it announced in a trading statement this week.

In announcing the cutbacks Persimmon said that house sales were down by 31%.

Persimmon’s trading statement said: “The first six months of this year have undoubtedly been the most challenging

“The significantly reduced availability of mortgage funds and a reduction in consumer confidence is restricting the level of sales activity and the volume of total housing transactions across all markets in the UK.” 

These latest cuts follow job loss announcements last week by two other house builders Taylor Wimpey and Barratt Developments. Taylor Wimpey is losing 900 jobs and Barratt is cutting around 1,000.

 

 

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