Plumbing firm Wolseley to cut up to 800 jobs in UK shake-up

Heating and plumbing supplier Wolseley (Frankfurt: A1W7PR - news) is planning to cut 800 jobs and close 80 branches and one distribution centre in the UK.

The firm said the UK restructuring plan was in response to a challenging environment and weak demand in the repair, maintenance and improvement markets.

"The closure of around 80 branches and one distribution centre is expected to lead to up to 800 job losses, the impact of which we will minimise through redeployment and attrition as far as possible," Wolseley said.

The firm currently operates 750 branches and employs around 6,000 people across the UK.

The company said the shake-up would take up to three years to implement and cost the firm in the region of £100m, but it expects it to generate £25-£30m in annual cost savings once complete.

The programme is subject to a consultation period expected to take 90 days.

Wolseley makes about 80% of its profit in the Unites States and just 8% in the UK.

The UK restructuring could mean the "first steps towards a US only business", according to analysts at Jefferies UK Building & Residential Services.

The group made the announcement alongside posting full-year results which saw overall revenue grow 4.2% to £14.4bn.

Pre-tax profit rose from £508m to £727m.