McAlpine completes switch from regions to sectors begun by former chief executive two years ago

Sir Robert McAlpine says it has completed its switch in focus from regions to sectors that was begun by former chief executive Paul Hamer more than two years ago but who left less than 12 months after he announced it.

Hamer went at the start of last year and was replaced by former Lendlease boss Neil Martin last February.

The restructure begun by Hamer saw it cut jobs, wave goodbye to two senior directors and begin a rejig to focus on sectors rather than regions.

This morning McAlpine said the reorganisation had been completed under an initiative called ‘Evolving SRM’.

It said the strategy “reflect[ed] the needs of customers in its core sectors and bring[s] senior management closer to its projects and clients.

“Launched in May 2023, Evolving SRM saw the organisation pivot from a 150-year-old regional operating model to a national, sector-led business.”

The firm said it will focus on “three dominant” sectors – commercial, healthcare and industrial – which will all report into Martin.

It said its special projects business is being folded into its commercial arm while its defence and nuclear work will become part of industrial.

McAlpine said it has slimmed down its executive board with Grant Findlay, previously executive managing director of buildings, and Steve Hudson, former executive managing director of infrastructure, both leaving the board with immediate effect. McAlpine said the pair will stay at the business although did not specify what their new job titles were.

>> See also: ‘They needed this’ – McAlpine’s new boss wins plaudits as industry prepares for firm to reset

Some staff are understood to be in consultation about their jobs with McAlpine confirming there was some “back office rationalisation” as a result of the changes. McAlpine declined to say how many jobs were going but the number is believed to be less than 50.

The firm added the changes were being made “to drive efficiency and decision making and bring the board closer to its clients and projects”.

In a statement, Martin said: “The strength of our sustainable engineering and technical capabilities has been a key factor for clients contracting with us on large-scale complex projects within our core sectors.

“As a result, we’re able to conclude our strategic reorganisation, introducing changes that will help the Board get closer to our projects and clients, improving communication and connectivity and allowing for more agile decision making.”

McAlpine, which last month lost out to Mace for the £700m deal to extend the British Library in London, said its order stood at around £2.2bn. In its last set of results, McAlpine posted a pre-tax profit of £10.4m in the year to 31 October on income up 7% to £940m.