Kier unleashes 1,200 job cuts

Radical plan to cull staff and sell offshoots

TROUBLED construction giant Kier is to axe 1,200 jobs and slash the size of its business.

The firm, working on the delayed Crossrail and HS2 projects, has seen its share price crash by 85% in the past year.

New boss Andrew Davies yesterday rushed out radical plans to overhaul the debt-laden group, which employs 21,000 people.

They include looking to sell four divisions, including its Kier Living affordable housing arm.

Instead, it will focus on four areas, including big projects and maintaining over 30,000 miles of major roads and 200,000 miles of small ones.

The shake-up will also involve accelerating a cost-cutting drive, with around 1,200 job losses. The cull has already started, with 650 jobs expected to have been shed by the end of this month and another 550 by next year.

Davies said: “There are four, in my view, very high quality businesses.

“But we need to administer selfhelp and today’s announcement is about taking decisive action.”

Kier’s battered share price fell another 17% yesterday as it confirmed it was suspending dividend payouts for at least two years.

The plans were announced weeks after Kier revealed a £ 40million profit warning.

Russ Mould, investment director at City firm AJ Bell, said: “These all seem like sensible steps but delivering on this plan will not be easy.

“The turnaround programme delivered by Leo Quinn at rival group Balfour Beatty offers Kier something of a template.”