Barratt Redrow are cutting costs in their first act since merging earlier this month, as they announce the closing of nine regional offices
Barratt Redrow are beginning their company integration, as the chief executive confirms that the company is looking to save £90m.
A series of cost-cuts will follow, including procurement and supply chain reviews to find 38% of targeted efficiencies, and consolidation of duplicated central and support functions to save £23m.
Barratt Redrow expects to deliver between 16,600-17,200 units in 2025
Consultation has begun for five of the nine offices expected to be closed. Roughly 800 workers are likely to be made redundant, 400-500 of which will already be affected.
The group has reassured workers on-site and in sales offices that their jobs will not be affected.
Cuts will also come to boardroom and senior management members, expected to save £23m.
The latest update said: “Following the receipt of CMA (Competition and Markets Authority) clearance on 4 October 2024, and the lifting of restrictions on our ability to undertake any integration activity, we have begun the integration of the two businesses at pace.
“As a result of our planning to date, we are confident that we can deliver cost synergies of at least £90 million.”
Office closures will save the company £33m
David Thomas said: “This is an exciting new chapter for our business. Barratt Redrow is uniquely well-positioned to meet the need for new homes of all tenures across the country.
“We have superior scale, with a differentiated multi brand offering that can be deployed across our strong combined land portfolio.
“We begin this journey with a strong balance sheet, a solid forward sales position and the ability to add significant value through cost and revenue synergies.
“We look forward with confidence to delivering a smooth and efficient integration process, and to capturing the enhanced growth opportunities ahead of us.”
