Rail specialist acts to 'absorb impact of Network Rail's sudden reduction in workload'
Jarvis has announced it will make 450 redundancies as a result of falling workload from Network Rail.
The move will result in a one-off hit of £8m and follows a profit warning from the rail specialist last month, saying that results in 2009 and 2010 would be “adversely impacted” by the drop-off.
Jarvis also recently announced it would close its freight container services operation at a cost of £3m.
Executive chairman Steven Norris said: “It has been a painful process to absorb the impact of Network Rail's sudden reduction in workload, but I am confident that by taking the necessary steps early the company can look forward to improved work volumes in 2010 and beyond.”