180 job cuts expected at Shepherd Construction

EMPLOYEES at Shepherd Construction are preparing for a major round of cuts, as directors attempt to downscale the business.

Around 180 jobs are in danger, with back-office staff largely at risk.

According to Construction Enquirer  the employees were told of the plans late last week and a redundancy consultation exercise is now underway.

York-based Shepherd Construction revealed that it ran up an £8.2m loss last year on turnover down a third to £240m.

Their Shepherd Engineering Services division made a £5.3m profit from turnover up 8% at £208m.

These two main Shepherd contracting arms employed nearly 1,400 staff.

Mark Perkins, Shepherd’s chief executive officer, said: “The executive board is currently reviewing the Shepherd Construction business, with a view to establishing the right scale and platform for future growth and sustainability.

“As part of the review, a formal 45 day collective consultation process with employees within Shepherd Construction and the divisional support teams commenced on April 1, to assess current resources.

“We must ensure that Shepherd Construction operates as efficiently as possible to meet the demands of today’s market and safeguard the long term future of the company and its workforce.

“We will do everything possible to minimise potential redundancies and prioritise the welfare of staff affected by the consultation throughout.”

Only last month construction giant Wates was courting an offer for the group, however it has appeared to have ended discussions and shelved any potential bid.