Wolseley chief executive speaks about economic slowdown

Wolseley group chief executive Chip Hornsby has spoken about the staff reductions that will be made in the face of rising costs throughout the building sector.

Wolseley group chief executive Chip Hornsby has spoken about the staff reductions that will be made in the face of rising costs throughout the building sector.

The construction supplies company announced the loss of 6,000 jobs worldwide following the deterioration of the domestic housing market and a 35 per cent reduction in pre tax profits.

While the company suffered a 17 per cent drop in profits in the UK and Ireland, its US operations accounted for a massive 46 per cent of the decline in profits.

Mr Hornsby said: "The deterioration in some of our key markets continues and it is likely that conditions will get tougher still. In these unprecedented circumstances, driving cost reduction, enhancing cash flow and closely managing the balance sheet, remain key priorities."

Some analysts predict the housing slump will last only for the next 12 months or so, and while the recruitment levels will suffer during such a time, the return of confidence in the market will no doubt lead to job stability returning in the near future.

In an effort to gain capital Wolseley has also sold three businesses in the US this year, earning itself £18 million, while investing in a company restructure which is hoped to save the company a further £136 million.