Senior members of firm's PFI and commercial property operations laid off
Kier has laid off senior members of its PFI and commercial property operations and put them under the control of one director.
As a result of the reorganisation at the firm, John Tibbitts, the long-time managing director of PFI, will leave, as will the 25-strong division’s business development director.
In addition, four posts from the property division will be lost, including that of construction director and assistant director. Kier’s turnover in its infrastructure investment arm last year was £15m, with £70m revenue from its property division. This compares with an overall turnover of £2.4bn at the company.
The divisions will now report to board director Dick Simkin.
It is understood that Kier has taken the view that it was not getting sufficient return, particularly in light of the problems of funding PFI schemes since the start of the credit crunch.
A Kier spokesperson said the change would improve efficiency by integrating operations.
The move comes despite speculation that funders may return to the PFI market. This week it was announced that the £5bn M25 road-widening contract had raised funding without going to the Treasury’s PFI rescue unit.