BAM Construct UK is to make up to 150 redundancies – the equivalent of around 6.5% of its workforce – in response to slowing demand caused by the coronavirus pandemic and lockdown.
The contractor said it was taking the step “reluctantly and with deep regret”. Those facing redundancy will be redeployed where possible to other parts of the business or roles within the wider BAM group.
In a statement, the firm said: “BAM has striven to avoid making redundancies, having taken early actions to combat the effects of covid-19, with measures including furloughing almost 500 staff, making temporary pay cuts, stopping recruitment, and cancelling bonuses and all non-essential spending.
“We have continued to win profitable new business which has also reduced the scale of redundancies.
“The coronavirus however is significantly affecting demand. We are already seeing a slowdown in new orders and we anticipate this will have an impact on our 2021 revenue.”
The firm added that the move was necessary to protect its business and future staffing levels, and that cost reductions would help maintain a strong balance sheet and good liquidity, with the aim of protecting remaining jobs.
It added: “We are extremely grateful to all our staff who have worked tirelessly to support the business during this exceptionally challenging period, and helping us in delivering essential covid-19 facilities for the NHS.”