Cash snub forces G4S to shed jobs
SECURITY company G4S is to cut 1,000 jobs in its cash handling business after shoppers dumped paper money due to Covid-19 fears.
The company is to shed almost a quarter of the division’s 4,500 staff amid a surge in card and contactless spending. Consumers have been advised to avoid cash where possible as it can carry the virus. G4S sold the bulk of its cash business to US rival Brinks earlier this year, as the FTSE 250 business focuses on the core security guard operations that provide work for the bulk of its 25,000 UK employees.
Shares closed up almost 10pc yesterday after bosses said they expected profits to be significantly above market expectations of £160m.
G4S also said it will announce half-year results next week rather than midAugust. Last week, it announced a deal with the Serious Fraud Office to settle an inquiry into claims it overcharged the Government for tagging offenders. The business will pay more than £40m in fines.
Paul van der Knaap, managing director of G4S’s British cash handling arm, said: “We are proposing to reshape the business to better align it with the changing needs of our customers.”