Fall of U.K.’s Carillion casts pall on jobs

LONDON — The fate of thousands of workers hung in the balance Wednesday after the collapse of Carillion, a major construction and services company that has a vast network of subcontractors and reaches deep into many facets of British life.

Work has slowed on a range of Carillion projects, and some subcontractors, unsure whether they will be paid or continue working, have begun curtailing assignments. The cracks appearing in Carillion’s sprawling network of services to the public and private sectors amplified fears that its failure could lead to the downfall of other companies that relied on it, putting tens of thousands of people out of work.

The demise of Carillion, which entered liquidation Monday, poses a political as well as economic challenge to the Conservative Party government of Prime Minister Theresa May, which declined to bail out the company. Even after it became clear last year that the company was in trouble, the government continued to award Carillion major contracts0

Carillion, with about 20,000 employees in Britain, touched myriad sectors of British life, as well as operating overseas. It managed or co-managed major, unfinished construction projects for the government. Carillion also helped operate an array of government services, including running prisons, delivering school lunches and maintaining schools and courthouses.