MJ Gleeson: chief exec quits and 70% of staff axed

MJ Gleeson continues to seriously implode with the news that its work force is being cut from 224 to just 50 while chief executive Paul Wallwork finds himself out of a job.

The figures exclude the Powerminster Gleeson Services division which is as healthy as ever.

Gleeson, which now dubs itself as an urban regeneration and strategic land specialist, made the announcement at the group’s annual meeting in London this morning.

Chairman Dermot Gleeson, said: “Demand in the housing market will inevitably remain extremely weak. The group is therefore implementing a further and very substantial cost reduction programme.

“This is designed to reduce the group’s annual ‘cash burn’, while at the same time protecting current and prospective value.”

Powerminster Gleeson Services is excluded as it “remains profitable and cash generative.”

The cost reduction programmes elsewhere will slash the group’s annual payroll costs from £12m to less than £4m by June 2009.

The headcount  – excluding Powerminster – “will fall from 224 to approximately 50,” said Gleeson.

“I would like to thank Paul for his strong and energetic leadership of the group during an extremely challenging period,” added Gleeson.

He will be replaced as chief executive by Chris Holt with effect from 1 January 2009. Holt has been finance director since 1 May 2007.