Firm confirms UK construction services to be reshaped around three work streams with around 650 jobs to go
Balfour Beatty’s restructure of its UK construction services division will see it reshaped around three divisions with around 650 jobs to be lost the firm has said.
As first revealed in Building, the heavy weight contractor will shed around 650 jobs with the restructure of its UK construction services division focused on three work streams: major infrastructure - focused on complex projects in key sectors such as energy and transportation; regional mechanical and electrical - across all sectors; and regional civil engineering and building - providing locally delivered, flexible and fully integrated civils and building services.
In a statement released last night, the firm said “regrettably a redundancy programme will be required to effect the changes in the business” and that it estimated that of the 12,000 employees across its construction services division, “approximately 650 roles will be made redundant”.
As expected it said operational employees involved in project delivery would not be affected.
The firm said a new senior leadership team for the reshaped business would be announced at the end of May, weith the transition period to run through to January 2013.
Mike Peasland, Balfour Beatty Construction Services UK chief executive, said: “This operating model will sharpen our focus on growth sectors and ensure the seamless integration of our capabilities for our customers as well as giving us the opportunity to create a more efficient structure.”
In its statement the firm said:
The changes will ensure that we increase our focus on the needs of our customers and on growth sectors, and that we enhance our leading market position, while emerging from the current downturn in UK construction as a more operationally efficient business.
The new business will operate through three business streams and will better integrate our service offering to customers. Centralised support functions will also be introduced. This model, which will become operational from January 2013, consists of:
- Major infrastructure - focused on complex projects in key sectors such as energy and transportation.
- Regional mechanical & electrical - across all sectors.
- Regional civil engineering and building - providing locally delivered, flexible and fully integrated civils and building services through partnerships and frameworks to our strategic customers.
A new senior leadership team, which will be announced at the end of May, will take the new business forward during a transition period which will run through to January 2013. The existing management team across our Construction Services UK operating companies* will remain in place during the transition period.
Regrettably, a redundancy programme will be required to effect the changes in the business and we estimate that of the 12,000 employees within Balfour Beatty Construction Services UK, approximately 650 roles will be made redundant. Operational employees involved in project delivery will not be affected.