As many as 15% of its 2,500-strong workforce could be laid off
Employees at Ibstock Brick face an uncertain future after the maufacturer admitted that up to 375 jobs could be lost.
The company, which has 19 manufacturing sites across the UK, is looking to cut 15% of its 2,500-strong workforce after the Coronavirus pandemic ground the construction industry to a halt.
A trading statement has revealed that the business has seen a 75% fall in sales for the two months to May 31 2020 and as a result is considering the closure of a number of sites.
The statement said: "The Group has taken significant action to address the challenges presented by COVID-19.
"These measures have included utilising the Government's Coronavirus Job Retention Scheme for a significant portion of colleagues during the shutdown period, reducing discretionary spend wherever possible and implementing a temporary salary reduction for the board and the executive leadership team.
"In addition, in order to ensure that the business remains well-positioned as it emerges from the current crisis, we are conducting a review of all operations.
"This review is expected to lead to a material reduction in the group's fixed cost base, through selective site closures, changes in operating patterns and changes to the size and structure of support functions.
"We have entered into consultations with employees across the group as part of a series of restructuring proposals, with up to 375 positions potentially impacted as a result of these actions.
"While the changes anticipated will ensure our business is adapted to the near-term industry demand outlook, we retain the flexibility to scale production back up, as and when demand recovers."
