Up to 80 jobs at risk due to housebuilder restructure

Up to 80 jobs are at risk at an Aberdeen-based housebuilder after a company restructure was announced.

Stewart Milne Group is merging its two homes divisions in Scotland to ensure they have “the right resources in the right places”.

The company, which employs around 1000 people, is launching a consultation process which will put between 60 and 80 roles at risk in Aberdeen, Glasgow and Manchester. Its workforce in Tayside will not be affected.

Stuart MacGregor, chief executive of Stewart Milne Group, said: “Over the last nine months, we have been developing new design standards, products and accelerated build programmes and investing in digitalisation that will make us more competitive.

“Our recent annual business plan process assessed the likely market demand in each of the housing markets in which we operate.

“As a result of this, we are combining our Scottish operations to ensure we have the right resources in the right places and can leverage the benefits of our newly developed consistent ways of working and standards of excellence in design, build and marketing.

“Regrettably, our restructure will impact on jobs and we are embarking on a consultation process which will put 60 – 80 posts at risk of redundancy in Aberdeen, Glasgow and Manchester from a total of almost 1000.

“This is not a decision we have taken lightly, but one based on what is best for the longer-term future of the business, protecting the majority of jobs and ensuring we are better positioned for growth in the next five years.

“We fully appreciate that this is a painful process given the current economic climate where many more people are also facing uncertainty. We are committed to managing the process as efficiently, fairly and transparently as possible.”

This year’s coronavirus restrictions have resulted in the loss of nearly three months of trading which has inevitably impacted on financial performance.

However, Stewart Milne Group has reported strong sales performance across Scotland and North West England since coming out of lockdown.

Mr MacGregor added: “The UK housing market is currently experiencing a short-term spike in activity and our forward sales position for 2021 is very strong. However, the group board has a responsibility to look further ahead and plan for the economic position we anticipate in the next few years.

“Although most areas of Scotland, and all of England, are currently subject to Covid-related restrictions, these do not affect our construction and manufacturing operations in the same way as they did earlier this year.

“It would therefore be wrong for us to make further use of the furlough scheme at this time when our restructure is not directly related to the current restrictions but rather to meet our longer-term activities.”