Jobs to go at Barratt Redrow as firm looks to save £90m

Barratt Redrow, the newly-formed housebuilding giant, is set to make job cuts after revealing it will close nine divisional offices.

The firm says the move will save it in the region of £90m over the next four years and will leave it with a new structure made up of 32 regional offices.

Leicestershire housing giant Barratt finalised its £2.5bn acquisition of North West housebuilder Redrow after receiving approval from the Competition and Markets Authority (CMA) earlier this month.

In a trading update issued this morning (October 23), Barratt Redrow said it has “conducted a detailed review” of its geographic coverage and offices to “optimise the divisional network” of the combined group.

Barratt Redrow announced earlier this week that it has started consultation on the closure of five of the nine offices it wants to close.

David Thomas, chief executive, said: “Whilst customer demand continues to be sensitive to the wider economy, we are beginning to see more stable market conditions with increased mortgage availability and affordability. It will take some time for customer confidence to fully recover from the macroeconomic headwinds faced over the past two years, but we are encouraged by the solid trading we have experienced over recent weeks.

“This is an exciting new chapter for our business. Barratt Redrow is uniquely well-positioned to meet the need for new homes of all tenures across the country. We have superior scale, with a differentiated multi brand offering that can be deployed across our strong combined land portfolio. We begin this journey with a strong balance sheet, a solid forward sales position and the ability to add significant value through cost and revenue synergies. We look forward with confidence to delivering a smooth and efficient integration process, and to capturing the enhanced growth opportunities ahead of us.”