Builders merchant Travis Perkins is to axe 2,500 jobs and close 165 branches as it prepares for a significant fall in demand for building supplies over the next two years in the wake of the Covid-19 pandemic.
The company, which operates a fleet of over 600 trucks, is to cut jobs in its distribution, administrative and sales divisions - amounting to 9% of the workforce.
Branch closures will focus on the firm’s smaller general merchant stores where it is difficult to implement safe Covid-19 distancing measures, or where profit margins are hit by reduced trading volumes.
Announcing the cuts in a trading update the company, which also owns Wickes, Toolstation and Tile Giant, said that despite a significant recovery in trading volumes in recent weeks, it is evident that the UK is facing a recession which will impact on demand for building materials during 2020 and 2021.
“Whilst we have experienced improving trends more recently, we do not expect a return to pre-Covid trading conditions for some time and consequently we have had to take the very difficult decision to begin consultations on the closure of selected branches and to reduce our workforce to ensure we can protect the group as a whole.
“This is in no way a reflection on those employees impacted and we will do everything we can to support them during this process.
“The group has a robust balance sheet and strong liquidity position and I am confident that these proposed changes will enable us to trade successfully through this period of uncertainty with a cost base that better reflects the environment we are operating in."
Asked how many logistics jobs will be affected, a Travis Perkins spokeswoman told motortransport.com that it is “too early” in the consultation process to provide details of where the cuts will fall.
In September last year Travis Perkins took on Ryder as its vehicle leasing partner for the group’s fleet of 620 vehicles after its previous supplier Gullivers went into administration.
