Building supplies firm to shed 2,000 jobs

British plumbing and building supplies firm Wolseley today announced plans to cut 2,000 jobs and close more than 200 branches in the UK and Ireland.

The Reading-based firm, which trades as Heat Merchants, Tubs and Tiles, Brooks and Brandon Hire in Ireland, said the moves reflected its expectations for a further decline in trading.

It has been confirmed that the cuts relates to the UK only and will not affect any of Wolseley’s 100 Irish stores.

The company also shed 5,050 positions between August and the end of October, mainly in North America.

Wolseley, which operates more than 1,900 branches in the UK and Ireland, said the latest job cuts would be phased over the next few months.

The pressure on Wolseley to reduce overheads was highlighted by first quarter figures today, with group trading profits down 30% due to lower profitability at its UK and American operations.

The company said: “Our objective remains to ensure the appropriate sizing of the cost base in line with the expected market environment.”

Wolseley said revenues in the UK and Ireland division decreased by about 10% with trading profits down by around 65% in the three months to October 31.

The company said its building materials brands such as Build Center in the UK and Brooks in Ireland continued to be affected by the rapid deterioration in new residential construction.

The company’s consumer-focused business Bathstore also reported a significant deterioration in revenues in the first quarter.

However, Wolseley said Plumb Center continued to show resilience, with more than two-thirds of revenues coming from the residential repair and maintenance market.