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Jobs threatened as Stewart Milne Group restructures

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image copyrightStewart Milne Group
image captionThe housebuilder says the restructuring is aimed at meeting its "longer-term activities"

Up to 80 jobs are under threat at Aberdeen-based housebuilder Stewart Milne Group after the company announced it was restructuring its business.

The group is launching a consultation process which will put between 60 and 80 posts at risk in Aberdeen, Glasgow and Manchester.

The company currently employs nearly 1,000 people.

The move follows a decision to merge its Scottish north and central homes divisions.

The company said it was combining its Scottish operations to "ensure we have the right resources in the right places".

It also pointed out that the restructure was not directly related to current Covid restrictions "but rather to meet our longer-term activities".

'Painful process'

Chief executive Stuart MacGregor said it was regrettable that the move would impact on jobs.

He said: "This is not a decision we have taken lightly, but one based on what is best for the longer-term future of the business, protecting the majority of jobs and ensuring we are better positioned for growth in the next five years.

"We fully appreciate that this is a painful process given the current economic climate where many more people are also facing uncertainty.

"We are committed to managing the process as efficiently, fairly and transparently as possible."

'Strong sales'

In a statement, the group said while Covid-imposed restrictions had "inevitably impacted on financial performance", it had seen strong sales performances across Scotland and north west England post-lockdown.

However, it added that sales in Aberdeenshire remained "more challenging due to a historic over-supply of properties and a significant drop in house prices as a result of almost six years of an oil and gas downturn".

During lockdown, when there was no housebuilding or manufacturing, Stewart Milne Group furloughed 795 employees.

The company said that since the market reopened, almost all of these employees had returned to work.

The group's timber systems business, which has a workforce of almost 400 people in Aberdeen and Witney, Oxfordshire, is not affected by the restructure.

Related Topics

  • Witney
  • Glasgow
  • Construction industry
  • Manchester
  • Scotland business
  • Aberdeen