UK plumbing giant cuts more jobs

Heating and plumbing giant Wolseley today said it planned to cut another 1,300 jobs as it battles deteriorating trading conditions in the United States.

The Reading-based company has already reduced its US headcount by 1,700 positions in the three months to October 31 – on top of the 4,650 jobs lost in the previous financial year. The job cuts completed so far amounted to a third of the workforce at the company’s Stock building supply arm.

Wolseley, which operates the brands Plumb Center and Build Center, said it was taking “swift and decisive action” in the more challenging business conditions. Trading profits in North America were down 30% in the three months to October 31, with revenues off 10% as the company battles a slowing US housing market and weakening levels of consumer confidence.

There are also signs of a sluggish housing market in the UK, but Wolseley said revenues and trading profits for its UK and Irish businesses still increased by around 5% in the quarter to the end of October.