Severfield has announced plans to reduce its workforce by 6% in response to ongoing trading pressures in the UK and Europe. The company, which employs approximately 1,800 staff, will cut over 100 jobs as part of a broader strategy to address delays in project deliveries and tighter pricing.
Along with the redundancies, Severfield will also implement a freeze on new hires and focus heavily on managing cashflow. The company has also reduced its planned capital expenditure and is working to accelerate tax refunds from HMRC. This comes as part of its efforts to mitigate the impact of the current economic challenges.
Severfield confirmed its bridge remedial works programme is on track, with costs remaining at £20 million. For the fiscal year ending 29 March 2025, the company reported net debt of £44 million, with an expected underlying pre-tax profit range of £18 million to £20 million.
The company’s order book in the UK and Europe is valued at £440 million, with £327 million of that scheduled for delivery within the next 12 months. Severfield’s CEO, Alan Dunsmore, is set to step down on 30 June after leading the company for over seven years.
