Modular homes company to cut 70 jobs

Derby-based TopHat, a company specialising in volumetric modular housing, has initiated a round of workforce reductions as part of an effort to streamline costs.

Approximately 70 positions are currently under review, with consultations already underway.

Established in 2016 and backed by investors such as Goldman Sachs, Aviva, and Persimmon, TopHat has received £200m in funding to date.

Despite this support, the company’s latest financial report for the year ending October 31, 2022, revealed a pre-tax loss increase to £20.4m from £19.4m in the previous period.

Turnover also declined from £12.3m to £10.2m, with the company employing a workforce of 212 individuals at the time.

Tophat said: “TopHat is consulting with employees as part of a programme to reduce the costs of the business in response to the prevailing challenging market. The changes are a prudent step to ensure the business maintains current delivery levels during 2024 and is well-positioned for growth as the market returns.

“The medium and long-term need for volumetric modular homes is becoming ever clearer as traditional build capacity is constrained by the growing skills shortage. While cost cutting is always tough, these changes will put TopHat in pole position for growth when demand rebounds.”