Atkins - total job losses to rise to 1,000 by March

WS Atkins has announced the intention to shed 1,000 jobs by the end of March.

At peak last summer the consultancy group had 18,600 employees and the economic downturn has resulted in a need to trim that figure by around 5% by the end of the current financial year (which ends in March).

Some posts have already gone. Previous announcements pointed to:

• 260 job losses in the UK design business
• 200 job losses in the Middle East

A spokesman said: “Atkins' performance in the last three months of 2008 was good and the group's overall financial position remains good.

“While our geographic diversity and the breadth and depth of what we do means we are more resilient to economic slowdown than many of our competitors, we are not immune.

“We will continue to take action from this position of strength to reduce staffing levels in parts of the group which are experiencing increasing uncertainty and worsening market conditions.”

In a trading update issued on the Stock Exchange, Atkins provided an insight into performance in Q3 (i.e. the third quarter of its financial year – representing the three months to the end of December 2008)

Overall performance remained “in line with our expectations”

Design and Engineering Solutions

The statement added: “Our UK building design business, which represents approximately 2% of group revenue, has been severely impacted by general market conditions and the deferral of projects by the Learning and Skills Council.

“The results of this segment for the full year will therefore be adversely impacted by re-structuring costs.

Rail

Continued to perform well.  Bidding on a number of packages of work for Crossrail.

Highways and Transportation

Solid progress.  Working with the Highways Agency and our partners towards financial close on the M25 DBFO contract. There is already a team working on the design “to ensure that the contractor can commence work on site as soon as practicable after the signing of the contract”.

Middle East

Performed well until confidence in the region was significantly impacted by the global economic slow down. The outlook remains uncertain.

Europe and China

Progress in line with our expectations, despite previously announced weakness in Ireland and Sweden.

Management and Project Services

The cost consultancy business, Faithful+Gould, is performing well.

Asset Management

Less rosy as performance has been hit by increased remediation costs of a long-term legacy PFI maintenance contract where Atkins acts as managing contractor.