Insulation and building materials distribution specialists SIG are to axe 65 branches and 900 jobs thanks to the slowdown in new housebuilding and RMI work.
The 900 jobs represent 7% of SIG’s workforce and the UK and Ireland will bear the brunt.
An interim management statement said that like-for-like sales for the UK and Ireland were down 5.3% in the second half of the year so far, compared with 3.3% growth in the first half of the year. The restructuring is likely to cost £19m and would “realign resources to current and expected trading levels”.
The company said: “It will be some time before the implications of the tighter liquidity and credit conditions now set to prevail well into 2009 become clear, but it is logical that these will not be without consequence for SIG’s markets and customers.” The cutbacks will mainly be in the UK and Ireland, but they will also have an impact on other European operations.
SIG supplies a range of specialist construction products and own a number of subsidiary brands across the UK, Ireland and the rest of Europe, including: Sheffield Insulations, Warren Insulation, Proos Roofing Supplies, Asphaltic Roofing Supplies and Omnico. Earlier this year they brought five of their specialist construction brands under one company: SIG Construction Accessories.