Bellway plans to shut two divisions as it embarks on a major restructure in light of the weakening housing market.
The housebuilder will shut its South Midlands and London Partnerships divisions and transfer current live sites to neighbouring arms of the company, a decision that will put roles at risk, with Bellway informing its staff members that it was starting a consultation process on redundancies. The developer will also scale back its Durham operation.
Bellway, which plans to transfer existing live sites in the divisions to be shut into neighbouring businesses, said it will also reduce a “limited” number of roles across the wider business.
Bellway currently employs 3,000 staff and refused to be drawn on how many positions might be at risk due to the restructure. The developer said that a ‘limited’ number of roles will be reduced, while a source close to the business believes that the figure stands at 90 jobs that may be lost. Further details of the restructure and redundancies are expected to be provided when Bellway publishes its end-of-year trading update tomorrow (09/08).
The national housebuilder becomes the latest to feel the effects of the weakening housing market after Redrow also scaled back its business and Taylor Wimpey’s profits fell by almost half in its half-year trading update.
A spokesperson for Bellway said: “In response to current market conditions which have caused a slowdown in the sales market and a reduced output for house building, we have today announced proposals to make some structural changes across our business.”
“This includes the potential closure of two of our operating divisions, with sites being transferred to other divisions, a reduction in capacity in a third division and a limited number of role reductions across the business.”
“A process of consulting with those potentially impacted has begun.”
