Wolseley axes 6,000 jobs as profit plummets

Materials giant Wolseley has announced the loss of 6,000 jobs worldwide as it battles the global economic slowdown.

In a trading update, Wolseley said that profit had fallen by 35% globally in the 11 months to 30 June 2008, with trading profit down by 17% in the UK and Ireland.

The headcount in the UK and Ireland business is being reduced by 150, with 13 branches being closed or consolidated.

Wolseley blamed the cuts on "tougher trading conditions in Ireland" and "an increasingly difficult UK housing market".

Chip Hornsby, group chief executive, said: "The deterioration in some of our core markets continues and it is likely that conditions will get tougher still.

"In these unprecedented circumstances, driving cost reduction, enhancing cash flow and closely managing the balance sheet remain key priorities."

The 6,000 job cuts worldwide, which began in August 2007, and restructuring will cost Wolseley £57m and result in savings of £136m.

Wolseley is due to announce its results for the 12 months to 31 July 2008 on 22 September.