Worcester centre under threat as Wolseley cuts 800 jobs

BUILDING supplies group Wolseley is to cut 800 jobs in the UK as it takes drastic action to address tough market conditions.
The group, which has its UK headquarters in Leamington Spa, saw its trading profit fall 18% to £74m.
It will close around 80 branches and a distribution centre is expected to lead to up to 800 job losses, which the company hopes will be minimised through redeployment and attrition.
Its Worcester distribution centre is under threat as Wolseley looks to reduce the capacity in its supply chain.
However the reorganisation of its logistics and supply chain network is a two-year plan and it does not expect roles or the number of roles to be affected until 2018.
Patrick Headon, managing director of Wolseley UK, said the company has “a great business in the UK”
He said: “The trends in our profitability have been disappointing and we need to take action to improve our customer proposition and the efficiency of our business.
“Over time I’m confident our proposals will benefit both our colleagues in the UK and the customers they serve every day.”
Wolseley expects to incur restructuring charges of £100m, of which £70m is cash, which is in addition to £10m charges when it closed 21 branches in the year to July.
John Martin, Wolseley group chief executive, added: “Our review of UK operational strategy has identified opportunities to transform our customer propositions whilst simplifying our branch network and supporting logistics facilities to greatly improve service levels, drive availability and choice for customers and generate better returns for shareholders.”
Wolseley will invest £40m over three years in refurbishment, technology and accelerating our investment in digital tools. 

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