Barratt culls 1,000 jobs

Barratt culls 1,000 jobs

Troubled housebuilder Barratt Developments today closed six offices and culled 1,000 jobs as it reacted to the collapse in demand for new homes.

Staff were told that the difficult situation at the housebuilder meant it needed to shed 15% of its 6,500 strong workforce.

Barratt, like other housebuilders, is struggling to cope with a 60% dive in housing starts since June last year. It is also weighed down by £1.8bn of debt, which has combined to push down its share price by 84% in two months to 42p.

The company held meetings at hotels around the country today at which staff were told of the changes.

It is understood the company had been waiting for its year end on June 30 before making the move.

A spokesman said: "We need to manage our overheads in light of the changing market conditions."

As part of the cull, Barratt will close two of its 32 divisions and merge eight others into four. Offices in Chester and Sheffield will close, while others in Scotland, Leeds, Southampton and the east Midlands will merge.

It follows similar moves at Taylor Wimpey, which announced 900 redundancies earlier in the week. Taylor Wimpey, the country's biggest housebuilder by volume is in also talks with its major shareholders about raising £500m to rebuild its shattered balance sheet.

guardian.co.uk © Guardian Newspapers Limited 2008

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