In a significant organisational shift, Lendlease’s UK construction head, Simon Gorski, has stepped down, coinciding with the company’s planned sale of its UK operations.
- Announced two months ago, Lendlease’s Australian parent company is set to exit the UK construction market, a move driven by strategic focus on home operations.
- David Cadiot takes charge of the sale process, having grown through the ranks since joining Lendlease as an undergraduate in 1995.
- The company’s European division faced financial downturns, with profits dropping due to several factors, including unsuccessful legal ventures.
- Despite impending sales, Lendlease continues securing substantial contracts, underscoring its operational capabilities.
In a significant organisational development, Simon Gorski, the managing director for European construction at Lendlease, has decided to vacate his role. This decision is aligned with the company’s recent announcement by its Australian parent firm to divest from its UK operations. Gorski, who has effectively led the European sector for five years, initially intended to maintain his position until a new owner was found, as stated last month in an interview with Construction News.
Lendlease’s departure from the UK market was declared in May, marking a strategic pivot towards prioritising its domestic Australian market. Group chief executive Tony Lombardo expressed confidence in offloading the UK division by the end of the upcoming year. This decision came on the heels of acknowledging international operations as a hindrance to shareholder profits, particularly highlighted by a decline in the European sector’s pre-tax profits, which plummeted by one-third in the fiscal year ending 30 June 2023.
Taking the reins from Gorski, David Cadiot, who has been part of Lendlease since 1995 and risen to the position of executive general manager, will now oversee the sale. An official spokesperson for the company confirmed Cadiot’s leadership role, effective immediately, with Gorski set to exit the company by month-end. The spokesperson noted that Gorski considered the current transitional phase an opportune time for leadership change, praising his commercial acumen and leadership which have significantly contributed to the business’s success.
The financial challenges faced by Lendlease’s European operations were exacerbated by various factors, including losses incurred from a failed legal claim concerning fire-safety defects in hospitals, alongside reduced bidding activities during the Covid-19 pandemic. Additionally, the complex market landscape further complicated the company’s financial health.
Despite these challenges and the impending sale, Lendlease has remained robust in securing high-value contracts, such as the £450 million contract for British Army barracks, reflecting its continued operational strength even during transitional periods.
The leadership change at Lendlease signifies a strategic shift as the company realigns its operational priorities towards its domestic market.
