Firm cuts jobs in its aerospace, environmental and water businesses

Atkins' Window of Guangzhou development

Atkins’ Window of Guangzhou development

Consultant Atkins has cut jobs in the UK and European business in response to “utilisation issues”.

In a trading update to the City this morning, the firm reported that it had taken people out of its aerospace, environmental and water businesses.

It said: “We have responded to utilisation issues in our aerospace and water and environmental businesses by making staff reductions and redeploying staff in both businesses during the first half.”

The firm said that ongoing demand for its services in other areas was “good”.

Atkins also reported it had incurred £4.5m of exceptional costs since April 2014 on an “unsuccessful pursuit of a significant acquisition opportunity”.

It is likely the costs relate to the firm’s bid to buy consultant Parsons Brinckerhoff from Balfour Beatty, in which Atkins lost out to rival WSP, but Atkins did not confirm this.

Atkins also said it had completed a restructure in its North American business and margins would improve this year, although it said it expected to see little improvement in the business’ results for the six months to 30 September.

It added that its Middle East business had had a “strong first half” to the year.

It said: “This is expected to contribute to a significant year on year performance improvement for the region.”

Atkins said that overall the firm’s outlook for the year “remains unchanged… despite currency headwinds in the period to date”.