{"id":609168,"date":"2023-02-17T23:49:03","date_gmt":"2023-02-18T05:49:03","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/02\/17\/gleeson-to-cut-50-jobs-as-profit-tumbles\/"},"modified":"2023-02-17T23:49:03","modified_gmt":"2023-02-18T05:49:03","slug":"gleeson-to-cut-50-jobs-as-profit-tumbles","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/02\/17\/gleeson-to-cut-50-jobs-as-profit-tumbles\/","title":{"rendered":"Gleeson to cut 50 jobs as profit tumbles"},"content":{"rendered":"
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\"Canal-Walk-Tyrone-show-home-Burnley-Lancashire-1024x684.jpg\" <\/p>\n

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Housebuilder MJ Gleeson is set to cut around 50 jobs after its pre-tax profit plummeted by a third.<\/p>\n

The company plans to reduce its 800-strong workforce by around 5 per cent in a reorganisation of its housebuilding arm.<\/p>\n

The restructure will see the three existing divisions of Gleeson Homes, which oversee nine regional offices, replaced by two divisions with just three regional offices each.<\/p>\n

The move is expected to deliver annual savings of \u00a34m after a one-off cost of \u00a32m, it said.<\/p>\n

Other \u201cdefensive measures\u201d planned by the company include slowing build rates on certain sites in line with demand, delaying the opening of new sites, freezing recruitment and \u201cmaintaining strong discipline on land-buying\u201d.<\/p>\n

Gleeson Land, which is\u00a0responsible for identifying development opportunities for the company, is unaffected by the reorganisation.<\/p>\n

Chief executive Graham Prothero, who took on the role<\/a> at the start of the year, said the reorganisation will ensure Gleeson\u2019s housebuilding arm was \u201cstrongly positioned\u201d for sustainable growth as market demand recovered.<\/p>\n

\u201cI want to ensure that the group is in the best possible shape to take advantage of the recovery which we are beginning to see early signs of,\u201d he said.<\/p>\n

\u201cBuilding on the strong platform I have inherited, my focus is on optimising our organisational structure and making us more operationally efficient and fit for further growth.\u201d<\/p>\n

The measures were announced as the company\u2019s half-year results to December 2022 showed pre-tax profit of \u00a316.1m, down from \u00a324.7m in the six months to December 2021.<\/p>\n

Prothero said the results reflected the challenges posed by the macroeconomic environment in the period, in particular during the last three months of 2022.<\/p>\n

\u201cMarket volatility and the sharp increase in interest rates following the disastrous mini-budget reduced affordability and severely impacted buyer confidence, causing a significant slowdown in demand,\u201d he said.<\/p>\n

\u201cMeanwhile, supply chain and inflationary pressures exacerbated by the war in Ukraine continue to put pressure on costs, although we are seeing some welcome mitigation in subcontract rates and certain material prices.\u201d<\/p>\n

He said confidence, underpinned by improved mortgage rates, was slowly returning to the market, evidenced by improving net reservations.<\/p>\n

At the end of last year, Gleeson announced the appointment of Guy Gusterson<\/a> to head its land division as part of a shake-up in the company\u2019s senior ranks.<\/p>\n<\/p><\/div>\n

Related articles<\/h3>\n<\/p><\/div>\n

Read More<\/a>
\n Kerry Lorimer<\/p>\n","protected":false},"excerpt":{"rendered":"

Housebuilder MJ Gleeson is set to cut around 50 jobs after its pre-tax profit plummeted by a third. The company plans to reduce its 800-strong workforce by around 5 per cent in a reorganisation of its housebuilding arm. The restructure will see the three existing divisions of Gleeson Homes, which oversee nine regional offices, replaced<\/p>\n","protected":false},"author":1,"featured_media":609169,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3515,23002],"tags":[],"class_list":{"0":"post-609168","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gleeson","8":"category-profit"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/609168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=609168"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/609168\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/609169"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=609168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=609168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=609168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}