Persimmon slashes construction jobs

08/07/2008

House builder, Persimmon, has said it will slash 1,100 construction jobs.

The company has added to the building sector's widespread redundancies - Taylor Wimpey recently announced it will lose 900 jobs and Barratt has cut a further 1,000.

Persimmon said its redundancies were due to the "likelihood of poorer market conditions continuing".

The firm reported sales fell 34 per cent to £1 billion and its profit margin dropped by more than six per cent, in the six months to June 30th.

It said "the reduced availability of mortgage funds and a reduction in consumer confidence" had reduced sales.

"The first six months of this year have undoubtedly been the most challenging period in Persimmon's recent history," it claimed.

Persimmon reported completions fell 31 per cent and said it would reduce new spend on developments.

According to National Statistics, the unemployment rate increased to 5.3 per cent in the three months to April, although the number of job vacancies also increased.

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