Galliford Try is preparing to cut around 350 jobs, as it revealed it could potentially close its infrastructure business in Scotland.
Last month, the firm warned that its full-year pre-tax profit would be £30m-£40m below analysts’ expectations and announced it would launch a strategic review of its construction arm.
The firm has struggled with rising costs on Morrison Construction’s role on the £1.35bn Queensferry Crossing project, where it is working in joint venture with Dragados, Hochtief, and American Bridge International.
It has also previously disclosed a £38m work in progress balance in respect of three contracts on the now-completed Aberdeen Western Peripheral Route.”
Most of the job losses are expected in Scotland, although some will come in other parts of the UK.
A spokesman for the business said: “Galliford Try has been undertaking a review of its Construction and Investments business with a view to reshaping its operations to become more efficient and increase profitability.
“Today we have announced to our employees the proposals emanating from that review which will involve the proposed closure of parts of the division, with potentially some job losses involved. This is a regrettable but unavoidable step and we have started to consult with those individuals potentially impacted by our proposals and are doing all that we can to support them during this difficult time.
“The major part of the proposed reorganisation will potentially see the infrastructure business unit in Scotland be closed. It is a matter of record that for some time our business has sustained considerable losses on two major infrastructure projects within Scotland.
“We remain fully committed to our existing profitable building operations for Morrison Construction in Scotland, delivering much-needed public facilities together with our partners in the hub vehicles.
“As a business we are confident that the proposed structure we are looking to put in place will provide us with robust foundations and leave us better suited to face the key markets where our future success lies.”
