Construction firm Kier has confirmed it will cut 1,200 jobs in an effort to reduce company debt. Kier hopes that the measure will save £55m a year by 2021.
650 jobs will be lost by the end of June, with a further 550 set to go in 2020.
The cuts are part of a broader company shift to streamline operations, focusing on construction and road maintenance.
Kier will close or sell several operations including its recycling and waste processing units and its homebuilding business, Kier Living.
These drastic cost-cutting measures follow a difficult period for Kier. Shares fell by over 85% last year and plummeted again by 22% two weeks ago after Kier issued a profit warning. The company stated that profits would be £25m below expectations. Kier shares dropped a further 9% in early trading this morning.
Kier’s largest investor, Woodford Investment Management, has been hit hard by the drop in Kier’s share price.