Persimmon staff numbers to drop by 700

Grant Prior 1 year ago
Share

An ongoing recruitment freeze at Persimmon will see staff numbers fall by 700 this year as the house building giant keeps a keen eye on costs.

Build rates are currently 30% lower than last year as the market continues to struggle.

Persimmon said: “We continue to operate from a lean fixed cost base and pursue a highly disciplined approach to Work In Progress management. As a consequence, build rates in the third quarter were c.30% lower year-on-year reflecting the slower sales environment.

“Disciplined management of costs remains a key focus for the Group and in addition to careful spend controls, the hiring freeze we have in place means that headcount is likely to reduce by c.700 during 2023.”

Persimmon is continuing to haggle with subcontractors over price reductions.

It said: “We have taken a proactive approach with suppliers and subcontractors to secure price reductions on both materials and labour over the past few months.

“In line with prior commentary, build cost inflation has been more stubborn than expected at the start of the year and we anticipate the annualised impact of build cost inflation through the P&L for 2023 will be c.8-9%. However, build costs have moderated since the half year which will benefit completions in 2024.”

Dean Finch, Group Chief Executive, added: “Trading in the period was in line with expectations and pricing was broadly stable. We are on track to deliver around 9,500 quality new homes in 2023 with operating profit in line with expectations and at an operating margin similar to the first half.

“While the near term is likely to remain challenging and we remain disciplined on costs, we continue to position the business for growth when the market recovers, as demonstrated by our further progress on planning in the period. The Group’s national network of outlets providing a high-quality product at a range of attractive prices is a crucial strength in this market.”

Latest news

Morgan Sindall lands £20m Brunswick Wharf scheme in Bideford

North Devon waterside project will provide 100 flats
11 hours ago

New BAM leisure centre pool springs a leak

Contractor investigating "technical issues" delaying new £36m green leisure centre
14 hours ago

Green light for £150m West End office revamp

Shaftesbury Avenue office retrofit retains 75% of original building
19 hours ago

Former Keltbray managers jailed after corruption trial

Jail sentences following bribery probe on jobs including Battersea Power Station
1 day ago

Lidl pumps £500m into store and logistics expansion

Discounter plans 40 new stores this year as expansion ramps up
20 hours ago

JJ Rhatigan UK profit jumps as turnover tops £150m

Irish contractor's expansion in England gathers pace
20 hours ago

Driverless digger to be used on Taylor Woodrow site

Autonomous excavator to work at Manchester Airport after successful trial
20 hours ago

MCS Build lands Basingstoke warehouse scheme

Construction starts this month after £26m funding deal
20 hours ago

Leeds United unveil stadium revamp design

Club has still to set a timeframe for staged Elland Road upgrade
1 day ago

Bowmer & Kirkland boosts margins as profits surge to £69m

Revenue nudges up towards £1.3bn in year of expansion
2 days ago

Offshore construction starts on £4bn windfarm

Foundations for first of 95 turbines installed: Watch video
2 days ago

AECOM buys civils consultant Allen Gordon

Global giant acquires Scottish water and energy specialist
2 days ago

Plans in for £1bn Northern Gateway site in Manchester

Plan for 500-acre manufacturing and logistic park advance
2 days ago

RED wins £31m London Shoreditch student digs job

Two extra floors will be added to Willen House scheme
2 days ago

Deconstruct handed £12m Grenfell demolition

Firm maintaining building awarded job without bid race to speed process
2 days ago

Sizewell site workers get made to measure PPE

Bespoke fitting service on offer at new Bryson branch
2 days ago

Comment: Gateway is acting like a barricade

Contractors left banging their heads on an (unbuilt) brick wall
5 days ago

Final phase of £1.5bn Elephant and Castle revamp hits planning

Get Living submits revised plan for 500 homes and 450-bed student block
6 days ago

Ealing backs final phase of £1.3bn estate rebuild

Friary Park estate rebuild in Acton reaches end stage
5 days ago

Green light for scaled-down Nottingham student tower

Glasshouse Street scheme will deliver 247 student rooms
5 days ago

Aston Villa to revamp North Stand

Club to reuse existing structure rather than complete rebuild
6 days ago

Mace signs ex-ISG director to lead Euro health and tech push

Gary Sweeney to head up healthcare and life sciences consultancy arm
5 days ago

Sir Robert McAlpine claws way back into profit

Firm says return to profit and strong cash balance validates new strategy
6 days ago

Severfield to cut staff by 6% amid pricing pressure

Steelwork contractor warns of extended tighter pricing due to project delays
6 days ago

JRL completes sale of 50% stake to Malaysian giant IJM

Deal boosts balance sheet and kicks starts growth plan
6 days ago

Green light for £100m Liverpool Baltic station build

Enabling highway works to start in the autumn
7 days ago

First live tests for flying construction robots

Drones can lay construction materials at height on site
6 days ago

Three firms land £170m Gentoo Sunderland housing deal

PHS Solutions, Esh and RE:GEN to deliver 10-year home upgrade plan
7 days ago

Gateway gridlock hits build-to-rent delivery as starts nosedive

Build to rent starts plunge 18% in the capital
7 days ago

Call to shift Gateway 2 checks to end building bottleneck

"The current system isn't working but we all want to see safe buildings"
7 days ago

Contractor services