The parent company of BAM Construction said it expects the programme to result in cost savings of €100 million annually, with the “majority of savings coming from headcount reductions”.

Subject to the outcome of the discussions with works councils and trades unions, BAM expects to implement the programme in the next six months, leading to significant savings already in 2021.

Ruud Joosten, CEO said: “Given the impact of the COVID-19 pandemic and the disappointing results over the first half year, we are taking decisive action to structurally improve our profitability.

“Although this is a painful decision for employees concerned, it is a necessary step in order to improve BAM’s financial performance.

“At the same time, we are defining our new strategic agenda in order to create more value for our shareholders and solid prospects for all our stakeholders, including our employees.”