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Restructuring at Sir Robert McAlpine will lead to job cuts as the firm switches its business model.
The business will “move from a regional operating model to a sector-focused model, with national centres of excellence providing projects with swift access to expertise”, it has said.
According to the firm, the change will result in a “leaner organisation” which is expected to reduce its current workforce by around 2.5%. A spokesperson for Sir Robert McAlpine has confirmed to NCE that it expects between 50 and 60 roles to be cut.
“All we can say at this stage is that all the jobs affected are not project related,” said the spokesperson. In addition, the spokesperson rejected the idea that there’s any information to suggest most of the planned job cuts are going to come from its London operation.
The spokesperson also told NCE that the firm has no plan at present to close any regional offices.
Sir Robert McAlpine has said that from 1 May it will “focus on sectors where it excels and accelerate growth in its infrastructure business”. The company says it is now prioritising sectors where it has been “most successful”.
Areas it is seeking to prioritise include healthcare, commercial offices, industrial, and heritage and complex schemes delivered by its Major & Special Projects team.
Despite the news of the job losses, the firm also said that it is growing the rail, transport and nuclear sectors of its infrastructure business, claiming the move “will drive profitable growth and minimise its exposure to ongoing geo-political and market risks”.
Sir Robert McAlpine chief executive Paul Hamer said: “The challenges that the industry is currently facing are exceptional and unprecedented.
“In this turbulent market, we owe it to our people and our clients to carefully consider how we apply our focus and expertise over the coming years to seize the opportunities that will support us to thrive. These changes are needed to enhance our operational agility. They mean we can move rapidly whilst generating improved efficiency and productivity. This does unfortunately result in a small number of roles becoming redundant, which is a difficult but necessary decision.
“This strategy provides the momentum to take Sir Robert McAlpine successfully into the next 150 years. It enables us to build on our existing strengths and realise our full potential.”
Sir Robert McAlpine reported a pre-tax profit of £9.2M for the 12 months to 31 October 2021, after a loss the year before.
At present, Sir Robert McAlpine is working on a number of major projects including the HS2 C1 package (Chiltern Tunnel and the Colne Valley viaduct) as part of a joint venture with Bouygues Travaux Publics and VolkerFitzpatrick. C1 comprises 21.6km of high-speed rail infrastructure in a rural environment.
The firm is also working on the A533 Expressway Bridge replacement scheme in the North West for National Highways as part of a joint venture with Amey. The 67m steel structure was moved into place last year after being built off-site at a compound close to the side of the M56.
Sir Robert McAlpine earlier this year won a 17-year framework worth £1bn to supply groundworks and concrete structures at the Sellafield site in Cumbria.
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