Job cuts tell how Mitie has fallen

BOSSES at outsourcer Mitie could lay off another 480 workers after they admitted the costs of overhauling the struggling business could be £9m more than expected.

The cuts are being considered as part of a review of the FTSE 250 firm’s cleaning and engineering arms and would be on top of 200 previously axed.

Union chiefs at Unite said they were seeking an urgent meeting with management.

The firm also said its Project Helix turnaround plan was set to cost £24m, up from £15m. A sale of its property management arm is on the cards.

Mitie, which supplies cleaners, hospital workers and baggage handlers at airports, said any job losses would take place before the end of March.

Overall, it is aiming to trim costs by £40m a year by 2020, by simplifying its corporate structure, outsourcing and automating some back- office functions and merging its London offices.

Yesterday shares fell by 0.6pc, or 1.5p, to 256.8p. The company’s news comes weeks after City watchdog the Financial Conduct Authority launched an investigation into it, relating to a 2016 profit warning and the way that it presents financial information.