Housebuilders furlough thousands of workers
Major housebuilders including Redrow, Crest Nicholson and MJ Gleeson have furloughed thousands of workers amid the continuing covid-19 pandemic.
Redrow announced last week that it would furlough 80% of its workforce – thought to be around 1,800 people – while the board and senior directors volunteered to take a 20% cut in salary. Since then, the wider directorate of the business has also agreed to take a 20% pay cut.
Redrow has also secured a £300m loan under the Covid Corporate Financing Facility (CCF), backed by the government. It is also negotiating an additional £100m of headroom under its existing revolving credit facility with six banks.
Meanwhile Crest Nicholson has furloughed around three quarters of its workforce – around 600 people – on full pay until the end of May, when arrangements will be reviewed, with the board and executive directors donating 20% of their gross salaries or fees to charity.
And MJ Gleeson, which builds and sells low-cost homes in the Midlands and north of England, has furloughed 456 employees – equivalent to 76% of its workforce – with all members of the board taking a reduction in salary and fees of 30%. Senior management are taking reductions in salary of between 5% and 20% according to salary bands.