0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Balfour Beatty Sheds Jobs, Targets £100m in Cost Savings

Written by: Keith Tully

Reviewed: Thursday 13th August, 2015

Around 400 members of Balfour Beatty’s workforce lost their jobs in the first half of this year as the infrastructure services group pursued sizable cost savings throughout its business.

The UK-based international operator revealed in its latest set of official financial figures that jobs had been shed on a considerable scale in early 2015 as £25 million worth of cost savings were reported.

According to Balfour Beatty’s current estimates, there will be further cost savings worth £25 million every six months going forward with a total of £100 million set to be saved by the end of 2016.

Jobs have reportedly been lost within a number of different operating units at Balfour Beatty, with employees focussed on IT, human resources, financing and legal matters among those to have moved on so far in 2015.

“Significant progress has been made to streamline the enabling functions within the Group, with new senior leadership in place for Finance, IT, Health and Safety, Legal, Communications and Investor Relations, Risk and Assurance and Procurement across the organisation,” a statement from the group said.

“The changes reduce costs where services have previously been duplicated in more than one business unit and ensure that best practice is delivered across Balfour Beatty in a consistent way.”

Official statements also explained that Balfour Beatty had been left with “multiple IT platforms” throughout its business as a result of having acquired so many companies over the course of the past decade.

These disparate platforms are now being integrated in ways that ultimately save the group money and require fewer IT experts to service and maintain.

This “rationalisation” of IT systems has also reportedly boosted the productivity of Balfour Beatty’s workforce more generally with associated issues said to have been greatly reduced.

Despite having been able to cut costs significantly in 2015, Balfour Beatty reported underlying losses worth £135 million for the first six months of the year, a figure down notably on the profit of £37 million reported in the same period of 2014.

However, the group clearly has a healthy supply of contracts with the overall value of its order book currently at close to £11.3 billion. 

Keith Tully

Keith Tully

Join Keith Tully on Linked In Join Keith Tully on Google Plus Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts

Who we help

  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships

Contact our team

Jonathan Munnery
Andrew MacKenzie
Julie Palmer
Thomas Mckay
Keith Tully
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Our numbers speak for themselves

Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners