Newly-merged housebuilder Barratt Redrow has said it is moving “at pace” on plans that will see it shut nine offices and axe around 800 workers to save costs following the group’s recent £2.5 billion deal.
Barratt, which completed its takeover of Redrow earlier this month after getting approval from the competition watchdog, said it had this week launched a consultation on the proposed closure of five of the nine divisional offices earmarked for closure.
It is thought 400 to 500 workers are impacted by the five closures so far, with back office and central support roles affected, although final numbers are subject to the consultation.
The group stressed workers on development sites and sales office-based staff will not be impacted by the cost cutting.
Barratt is looking to save at least £90 million in costs following the Redrow acquisition and it revealed earlier this year that around 10% of the 8,300-strong combined workforce, or about 800 jobs, would go.
In its latest update, it said: “Following the receipt of CMA (Competition and Markets Authority) clearance on 4 October 2024, and the lifting of restrictions on our ability to undertake any integration activity, we have begun the integration of the two businesses at pace.
“As a result of our planning to date, we are confident that we can deliver cost synergies of at least £90 million.”
It said £33 million of the total cost savings would come from the office closures around the UK.
A further £23 million, or 25% of the total savings, will come from cuts including across its boardroom roles and senior management.
A spokesman for Barratt Redrow said: “With the combination of Barratt and Redrow, we have carefully reviewed our existing office structures and geographic coverage so that we can combine our two companies in the most effective way possible.
“Our sites will not be affected, and all employees impacted by these proposals have been informed – we will commence a period of collective consultation with employees and are working closely with our teams to support anyone affected by these changes.”
Details on the closures came as Redrow said it is beginning to see a more stable property market.
It added the combined group is set to complete between 16,000 to 17,000 homes in 2024-25.
David Thomas, chief executive of Barratt, said: “Whilst customer demand continues to be sensitive to the wider economy, we are beginning to see more stable market conditions with increased mortgage availability and affordability.
“It will take some time for customer confidence to fully recover from the macroeconomic headwinds faced over the past two years, but we are encouraged by the solid trading we have experienced over recent weeks.”
