Babcock International Group PLC, a UK based defence engineering firm, is laying off 1,000 employees worldwide. The step is undertaken to reduce its overall operating cost base.
A statement made by the Group said, “We are changing our operating model to create a business that is more efficient and effective. We are reducing layers of management within the business to form a simpler, flatter structure that will simplify how we operate, improve line of sight, shorten communication lines and therefore increase business flexibility and our responsiveness to market conditions. This will reinforce a one company culture and remove the duplication and lower quality delivery that a siloed approach delivered.”
“This, unfortunately, will result in headcount reductions. We are also reducing the Group’s property portfolio, especially in the UK.
The changes will result in approximately 1,000 employees leaving the Group within the next twelve months with an approximate restructuring cost of £40 million, most of which are cash costs,” it added.
Some of the savings will be recognized across long term projects, for example where they form part of existing contract efficiency assumptions, and some savings will benefit our customers via the contract structure, the statement informed.
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.