Wolseley to shed 2,300 more jobs

Wolseley has been hit hard by the housing downturn in the UK and US

Plumbing and building materials firm Wolseley says it is to cut 2,300 more jobs, the majority in the UK, and close more than 200 branches.

Wolseley, which owns the Plumb Center and Build Center chains and operates in Europe and North America, said it had already cut 5,000 posts since August.

It added that trading conditions were expected to worsen in the short-run.

"We continue to react swiftly to market conditions with aggressive but measured cost reduction," the company said.

Profits for the three-month period to 31 October were down by about 45%.

'Rapid deterioration'

"While these results reflect a further deterioration in the business environment in the first quarter, it was not unexpected," said chief executive Chip Hornsby.

"In these unprecedented circumstances, the key priorities remain driving cost reduction and enhancing cash flow to ensure the group remains compliant with its banking covenants."

Wolseley, which is based near Reading, has been hard-hit by the housing downturn in both the US and the UK.

The company said it had seen a "rapid deterioration" in the UK market, although the scale of the downturn was in line with its predictions.

Revenue for the UK and Ireland was down 10%, with trading profit 65% lower.

In a move aimed at saving £80m a year, Wolseley said it would cut about 2,000 posts in the next few months in the UK and the Irish Republic and close more than 200 branches.

The firm currently operates more than 1,900 branches in the UK and the Irish Republic.