BAM Construct UK, a subsidiary of Royal BAM Group, has announced up to 150 job cuts, representing 6.5% of its total workforce.

During the coronavirus pandemic, the contractor had furloughed nearly 500 of its staff and claimed that the move will help avoid its staff losing jobs, because of the lockdowns being imposed.

But, the pandemic had also resulted in a fall in demand, meaning that there would be a decline in its turnover this year. The firm said that it will begin consultations this week.

In a statement, BAM Construct UK said: “We take this step reluctantly and with deep regret. Our people are what make BAM the most collaborative built environment enterprise in the UK. We will redeploy people if possible to other parts of our business or to roles within the wider group.

“If we cannot redeploy somebody and redundancy is the only option, then we will support them in the best way we can during the process and as they leave the business.

“BAM has striven to avoid making redundancies, having taken early actions to combat the effects of Covid-19, with measures including furloughing almost 500 staff, making temporary pay cuts, stopping recruitment, and cancelling bonuses and all non-essential spending.”

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While the firm claims to have secured new contracts, which has reduced the scale of redundancies, yet the pandemic has significantly affected the demand. There has been a fall in new orders, which will affect its revenues.

BAM continued saying: “We must, therefore, protect our business and future staffing levels. Further reducing costs will help us retain our strong balance sheet and good liquidity, protect remaining jobs, and remain competitive and well-placed to serve our clients.”

Recently, its parent company reported a loss of £133m for the half-year resulting from the Covid-19 crisis hitting its operations across European countries including Ireland, Belgium and largely in the UK.

In May, BAM Construct also announced a 20% pay cut for its staff for a minimum of three months and a cut in the 2019 bonus payout. It also claimed that the senior management took a 20% pay cut in April.

The company had also stopped all non-business critical spending and is implementing cost-cutting measures to reduce the amount of cash outflow for the next few months.

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BAM Construct UK announces 150 staff redundancies. (Credit: Royal BAM Group nv.)