Skanska UK, which previously reported as a separate operating business line, has been reorganised into a new business unit called Skanska Europe.

The extent of losses at the business have been unveiled after Skanska said a week ago that it was taking a £33m hit on UK projects.

Major project cost overruns were exposed just two months after Skanska UK President and CEO Mike Putnam left the firm, handing over to Gregor Craig, who joined Skanska in 2003 as operations director at the London commercial building operation.

Skanska Group’s president Johan Karlström said losses at the UK, US and Polish businesses had overshadowed a strong performance in the Nordic countries, and the stable performance in the majority of the U.S.

“This is of course not acceptable and we have and are taking additional actions to restore the profitability in the US, UK and Poland, where the latter is progressing according to plan.

“These actions include additional strengthening of risk management and training, focusing the operations and reducing organisational costs even further.”

Construction revenue across Skanska Europe, which includes Poland, Hungary and the Czech Republic, edged up 5% to £1.35bn.