Mayfield developer cuts wages and announces redundancies in face of crisis
The developer behind one of Manchester’s biggest developments has announced a series of cost cutting measures.
London based U+I is the lead partner on the £1bn Mayfield scheme which will see a a parcel of derelict land close to Piccadilly train station redeveloped.
The firm has withdrawn financial guidance on its schemes and has introduced a redundancy programme aimed at saving £1.4m a year.
A number of staff have also been furloughed and salaries have also been cut.
U+I said the coronavirus pandemic has “compounded an already challenging market backdrop, with decision-making and economic activity grinding to a virtual halt in the final month of our financial year”.
A statement to the stock market added: “These factors, most of which were outside of our control, have meant that our FY2020 gross development and trading gains are £16m, below the low end of our £35m-45m target.”
Chief executive Matthew Weiner said: “Over the coming months, these cost reductions will strengthen the fundamentals of the business and enable U+I to deliver on its pipeline through a more efficient approach.
“We are committed to working with our tenants during this difficult period, and our contingency planning is in place and working effectively to ensure business continuity.
“I am confident that the group’s strategy, supported by a talented team, will see U+I emerge from the near term uncertainties in a strong position and we will see the return of the undoubted structural demand for regeneration from both end users, central and local governments and capital partners.”