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Over 100 jobs at risk as one of the UK's largest housebuilding companies plans to close two sites and cut office staff
17 July 2023, 19:04 | Updated: 17 July 2023, 19:54
Redrow is planning to close two of its sites in the South of England, and cut staff in its head office - with over 100 jobs at risk, LBC has learned.
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Redrow, which has seen profits slip in recent months, told some of its staff in a virtual conference call that their jobs were at risk
LBC has been passed emails and documents confirming, from the firm's chief executive, that they plan to close the Crawley and Thames Valley offices. The Crawley office is the company's base for Southern England.
The memo, sent to all staff, and leaked to LBC, said the current economic climate was having a negative impact on the homebuilding industry, and that as a result, the company was having to limit its investment in land.
The firm is one of the largest housebuilders in the UK employing more than 2,000 people across 14 sites. One employee told LBC at least 100 people were at risk of losing their jobs.
In a statement, confirming the proposal, Redrow said its current developments were unaffected, and that only a small number of staff would be made redundant.
In the internal memo, the company cites cost of living pressures and current interest rates as being challenging.
In response, a spokesperson for Redrow told LBC: "Our developments are unaffected by the proposed changes we have briefed to colleagues today.
"We are proposing to close the administrative offices of our Southern and Thames Valley divisions, and make a small reduction in staffing across some of our other teams".
They added: "We appreciate how difficult this is for those colleagues that are affected and we are supporting them throughout this process."
Independent Property Expert David Galman told LBC that Redrow was "an extremely good quality and large homebuilding institution" but that it was currently a "perfect storm with interest rates and a lack of help to buy to aid the lower end of the market".
Andy Silvester, the editor of CityAM, told LBC: "It is bad news. What we are seeing is the Bank of England’s decisions affecting the real economy.
"Unfortunately, it is a canary in the coal mine for the rest of the sector."
In response to LBC's findings, the Home Builders Federation said: "The government’s approach to house building and the downturn in the economy is having an inevitable impact on the industry, and knock on social and economic implications. Companies are inevitably having to take tough decisions for the long-term prospects of their businesses."
