Firm announces plans to shed as many as 250 jobs in Scotland after reduction in gas maintenance work

May Gurney has announced plans to shed up to 250 jobs in Scotland as it looks to down size its business north of the Border following a reduction in gas maintenance work.

The move comes after May Gurney issued a profit warning earlier this month, and announced the departure of its chief executive Phillip Fellowes-Prynne.

At the time the firm said it had “on-going difficulties” within its Scottish Utilities business as Scotia Gas Networks (SGN) looked to use more in-house labour and reduce its outsourcing. May Gurney finance director Mark Hazlewood said this would hit around £20m of revenues and admitted the fall in Scottish work would lead to job losses.

Now the firm has embarked on a consultation with employees in Aberdeen, Dundee and Falkirk, with as many as 250 jobs to be cut.

In a statement, the firm said: “While May Gurney will continue to work with SGN in a strategic partnership, this decision will result in a significant reduction in the work we undertake for the group in Scotland and, also, our staffing requirements going forward.

“As a result, we have entered into consultations with our staff and anticipate that up to 250 people could be affected by this development.

“We will be working with employee representatives to seek alternative roles for our people and anticipate a number of those impacted could be redeployed.”

“In addition to continuing our discussions with SGN, we have also been working with one of our other long-term clients - Scottish Water - with a view to using transferable skills and retraining to create new jobs on the contract we deliver for them.”

Shares in May Gurney fell more than 40% on the news of the profit warning on 6 September, to just over 130p, wiping almost £66m off the value of the company. The firm’s shares were trading at 113p this morning.