Barratt announces 1,000 job losses

Housebuilder Barratt Developments has announced plans to reduce its headcount by 1,000 as it battles with the property slowdown. The company has a workforce of around 6,500.

The news follows that from rival Taylor Wimpey who said it failed to secure £500 million from shareholders in a bid to shore up its balance sheet and is to close 13 of its 39 regional offices, which represents around 900 jobs.

The entire housebuilding sector has been suffering of late due to the credit crunch and housing slowdown.

Other housebuilding giants Bovis Homes and Persimmon have announced warnings lately and the latter recently confirmed that it is to stop building on new sites until market conditions improve, which could result in tens of thousands of job losses.

It is believed that Barratts is closing two regional divisions and merging another eight into four.

In related news, Barratts is rumoured to be close to securing a rescue refinancing with lenders that will relax its banking covenants and help it through the property slowdown.

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