Bovis Homes & Redrow to reduce workforces by 40%

Bovis Homes and Redrow are the latest housebuilders to announce job cuts as both plan to reduce their workforces by 40%.

According to its website, Bovis employs 900 people and in a trading statement it said the number of houses it sold in the first half of the year was down by 32% (to 851) compared to the same period in 2007. Within that number the proportion of social and partnership houses doubled to 27%.

The company will close its Eastern regional office and transfer the operation to its Central and South Eastern offices and is amalgamating some functions of its Northern regional with its Central region. Overall the company will reduce its workforce by 40% compared to the start of the year, and cut overheads by 20%.

Its share price has slumped from around £8 last summer to £3.20.

Redrow is taking similar actions, as its reservation levels and forward sales have halved, while cancellation levels have almost doubled to 30%. It has announced plans to close two of its 10 offices and reduce headcount across the group by 40%.

Money earmarked for land purchase has been reduced and the company’s share price has fallen from over £5 to just below £1.