Stewart Milne to merge Scottish homes divisions with up to 80 jobs under threat

Stewart Milne Group has started a redundancy consultation process with its workforce after announcing plans to merge its central and north homes divisions in Scotland amid weaker trading since the lockdown was imposed.

Stewart Milne to merge Scottish homes divisions with up to 80 jobs under threat

Up to 80 employees are expected to be made redundant under the restructure, with staff in Aberdeen, Glasgow and Manchester among those to be impacted.

Jonathan Fair, currently managing director of Stewart Milne Homes Central, will head up the combined division, with Neil Thomson, regional director for Stewart Milne Homes North, becoming deputy managing director of the enlarged unit.



Citing market weakness in Aberdeenshire and the financial impact of losing nearly three months of trading during lockdown, the company said it had faced a historic over-supply of properties and a significant drop in house prices.

However, it added that, since coming out of lockdown, it had achieved strong sales performance across Scotland and north-west England, Tayside, the central belt of Scotland and north-west England.

Stewart Milne Group chief executive, Stuart MacGregor, said: “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.”

He added: “Regrettably, our restructure will impact on jobs and we are embarking on a consultation process which will put 60 to 80 posts at risk of redundancy in Aberdeen, Glasgow and Manchester from a total of almost 1,000.



“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.

 “The UK housing market is currently experiencing a short-term spike in activity and our forward sales position for 2021 is very strong. However, the group board has a responsibility to look further ahead and plan for the economic position we anticipate in the next few years.

“Although most areas of Scotland, and all of England, are currently subject to Covid-related restrictions, these do not affect our construction and manufacturing operations in the same way as they did earlier this year. It would therefore be wrong for us to make further use of the furlough scheme at this time when our restructure is not directly related to the current restrictions but rather to meet our longer-term activities.”

The group’s timber systems business is not affected by the restructure.


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