Barratt and Redrow merger could lead to 800 job losses

Housebuilder Barratt’s acquisition of Redrow in a £2.54bn could lead to around 800 job cuts.

The proposed deal was revealed on Wednesday and shareholders will now be asked to vote it through to create a group that had a combined turnover of more than £7.5bn last year and has a land pipeline of over 92,000 plots.

Barratt currently employs 6,000 people and Redrow 2,300, but bid documents show that the combined company expects to reduce its workforce by about 10%.

The firms said: “This reduction is intended to come from employees and management, overlapping central and support functions and divisions affected by the rationalisation programme as a result of the combination.

“Following completion, Barratt intends to retain the best talent of Barratt and Redrow.”

It has been reported that job reductions will not impact staff working on construction sites however, both companies will review their office networks, with approximately nine offices expected to close.

Barratt said the tie-up with Redrow would “bring together complementary offerings to create an exceptional UK homebuilder in terms of quality, service and sustainability that builds high-quality, sustainable homes and communities for customers across the UK, addressing the country’s need for homes”.

Barratt presently operates 29 divisional offices, while Redrow has 12 offices nationwide.