THE credit crunch has claimed another victim in the housing market as Persimmon says it has laid off more than a fifth of its workforce.
The group, which says it faces the toughest times in its recent history, said the number of house sales had slumped by 31% to 5,501 in the first six months of the year, leaving sales revenues down by more than a third at £1bn.
Persimmon confirmed that a total of 1,100 jobs will have been cut so far this year under an overhaul to save around £45m a year.
The York-based group, which trades as Charles Church, Persimmon Homes and Westbury Partnerships, said it hoped the measures were enough to see it through the housing market turmoil.
It now employs around 3,900 staff after the job cuts, with 32 offices across the UK. The company has shut three offices since January, but said yesterday it did not plan to close any more as it sought to retain a national presence.
However, it did not rule out further job cuts given the market woes, which have seen the average selling price drop to £181,500 from £189,255 in the first half of last year.
“The first six months of this year have undoubtedly been the most challenging period in Persimmon’s recent history,” the company said.
Persimmon’s developments include The Venue, in Kirkby, Mere’s Edge and The Arbour, in Helsby, and Rivenmill, in Widnes.
The group’s job losses add to nearly 2,000 staff cuts announced last week by rival firms Taylor Wimpey and Barratt Developments.
However, Persimmon said it did not expect to make any significant write-downs on the value of its land bank, which comes in stark contrast to rival Taylor Wimpey’s news that it was wiping £660m off its land value.
Housebuilders have been hit hard by the credit crunch as the mortgage drought has meant homebuyers have been unable to secure the finance they need, while property price falls have put people off buying a home.
Persimmon lost its place in the FTSE 100 Index last month after its share price plummeted. The firm’s stock is worth around a fifth of its value a year ago.
NERVOUS TIMES IN THE HOUSING MARKET: PAGES 10-11
alistairhoughton
