Bam is undergoing organisational restructuring, with 40 job cuts planned in its UK and Ireland construction division.
- The job cuts affect Bam’s London and Northern teams as the company adapts to challenging market conditions.
- Bam’s decision follows a significant financial loss due to a project in Manchester, exacerbating its financial struggles.
- This is the second instance of job cuts within a year as Bam attempts to stabilise regional and divisional structures.
- Despite being one of the UK’s top contractors, Bam reported a £12.5m loss in its construction arm.
Bam is in the process of consulting on a plan to cut 40 jobs within its UK and Ireland construction division, specifically targeting employees in the London and Northern teams. The move is part of Bam’s strategy to adapt to current market conditions, which have proven to be particularly challenging for the construction sector over the past two years. According to a company spokesperson, this decision is aimed at further embedding the regional and divisional structures that have been in place in recent years.
The impetus for these job cuts can be traced back to Bam’s recent financial challenges, notably stemming from its involvement in the Co-op Live arena project in Manchester. The project’s developer reported to the Manchester Evening News that costs had inflated by at least £85 million, following multiple delays of the venue’s opening night due to building issues. This financial setback has been a significant contributor to the company’s current fiscal difficulties.
This announcement marks the second round of job cuts at Bam within the past year. In the previous July, the company had already implemented a ‘small number of redundancies’ following a reorganisation of its regional construction businesses. Such actions underscore Bam’s ongoing efforts to align its workforce with its strategic objectives and market realities.
Despite its challenges, Bam maintains a strong presence in the UK construction industry, being ranked seventh in Construction News’ annual table of the UK’s top 100 construction firms. However, the company’s UK construction division reported an adjusted loss of €14.8 million (£12.5 million) for earnings before interest, taxes, depreciation, and amortisation (EBITDA), according to unaudited accounts from February. This loss is largely attributed to supply chain issues and cost overruns on a significant project, as noted by Ruud Joosten, the Chief Executive of Royal Bam.
Bam’s decision to cut jobs reflects its strategic response to financial pressures and challenging market conditions.
