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G4S cuts 1,000 jobs in cash handling division

Alan Tovey
·1-min read
G4S van
G4S van

Security company G4S is to slash 1,000 jobs in its cash handling business after shoppers dumped paper money due to fears over coronavirus.

The company is preparing to axe almost a quarter of the division’s 4,500 staff amid a surge in card and contactless spending. Consumers have been advised to avoid cash where possible as it can carry Covid-19.

G4S sold the bulk of its cash business to US rival Brinks earlier this year, as the FTSE 250 business focuses on the core security guard operations that provide work for the bulk of its 25,000 UK employees.

Shares in the firm rose almost 10pc on Monday after bosses said they expect profits to be significantly above market expectations of about £160m.

Markets Hub - G4S PLC
Markets Hub - G4S PLC

The company also said that it will announce half-year results next week rather than mid-August as previously planned.

Last week G4S announced an agreement with the Serious Fraud Office to settle a long-running investigation into claims it overcharged the Government for electronically tagging offenders.  The business will pay more than £40m in fines.

Paul van der Knaap, managing director of G4S's British cash handling arm, said: "We are proposing to reshape the business to better align it with the changing needs of our customers.

“Regrettably this will result in a reduction in headcount, and today we have entered into a period of consultation with affected staff. 

“We are working closely with unions and individuals to offer opportunities for redeployment within the group.”