Skanska to shed 3,000 jobs as part of ‘comprehensive restructure’
The Swedish group said this morning that the comprehensive restructuring, which follows a strategic review initiated in autumn 2017, will involve quitting the US power sector and focusing on its core business in the UK.
The move follows “unsatisfactory performance” across several construction units in Europe, outside of the Nordic regions, and a slowdown in European infrastructure development (PPP).
The cost of starting the restructuring process to improve profitability has impacted Skanska’s year-end results. The review and following changes have resulted in a SEK1.1 billion (£99 million) charge in the fourth quarter and will cost SEK600m in 2018. Operating income for full-year 2017 is expected to be about SEK5.3bn.
In a trading update the group said: “In order to improve profitability Skanska will reduce the size of unprofitable business units and increase focus on cost control and risk management. Skanska will also make a number of organizational and leadership changes.
“Due to the unsatisfactory performance of several construction units Skanska will take the following actions: restructure the construction operations in Poland, leave the power sector in the USA, focus on the core business in the UK and continue to adapt to tougher market conditions in the Czech Republic.”
Skanska will reduce the size of unprofitable business units and increase its focus on cost control and risk management. The company will also make a number of organisational and leadership changes.
In residential and commercial property development, opportunities and growth ambitions remain, said Skanska.
However, due to a thin project pipeline in Europe, infrastructure development will now mainly focus on the opportunities in the USA.