One in 10 staff at Watkin Jones may face redundancy, as the firm faces up to a “challenging” economic environment.
The contractor and developer, which focuses on build-to-rent, student and affordable housing, said it was looking to shed about 40 of its 400-strong workforce to secure the longer-term future of the business.
In a statement, a spokesperson for Watkin Jones Group said that job cuts were essential to allow the company to operate “as effectively and efficiently as possible”.
“Against the current challenging economic environment, we have undertaken a detailed review of our company and made the very difficult decision to propose a reduction in the number of roles in some of our teams,” he said.
“This was not a decision made lightly but we believe it is necessary to operate as effectively and efficiently as possible in support of our long-term success.
“We are now entering a consultation period and will do everything we can to support our people.”
In September, the company was chosen to construct hundreds of apartments in Cardiff as part of a wider £1bn regeneration project in the city.
At the start of the year, it announced that pre-tax profit had doubled to £51.1m on the back of its success in the build-to-rent sector, although profits fell in its student accommodation and affordable-housing divisions. Revenue for the year rose to more than £430.2m, up from £354.1m in the previous year.
However, earlier this month, shares in the company plunged as it warned that underlying operating profit for the year would miss its target by 10 per cent, citing market and pricing weakness on deals concluded in the second half of the year.
The firm said two forward sales that had been planned to close in September had been affected by market volatility following September’s mini-budget, delivered by then chancellor Kwasi Kwarteng under prime minister Liz Truss. These sales should now close next year, the firm said.
Watkin Jones chief executive Richard Simpson is the 16th-best paid executive among UK listed construction companies, a Construction News analysis found last month. He took home £784,735 last year.
