Over 200 branches will also close as profit falls 45% at international materials supplier

Building materials firm Wolseley said it will cut 2,300 more jobs, most of them in the UK, and close more than 200 branches as it announced a 45% slump in pre-tax profit.

In a statement to the stock exchange for the three months to 31 October, the firm said it has already axed 5,000 posts in the first quarter as trading conditions deteriorated.

Chip Hornsby
Hornsby: "aggressive but measured cost reduction"

The firm, which operates in Britain and North America supplying materials to the construction industry, said that the majority of further job cuts will be in the UK.

Chief executive Chip Hornsby said the worsening market conditions are “not unexpected” and that the group will continue to look for ways to cut costs and reduce debts.

He said: “We continue to react swiftly to market conditions with aggressive but measured cost reduction. In these unprecedented circumstances, the key priorities remain driving cost reduction and enhancing cash flow to ensure the group remains compliant with its banking covenants.”