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Mitie warns over job losses

by LLB Reporter
6th Jun 19 11:10 am

Outsourcing giant Mitie has warned of more job cuts as the firm’s turnaround continues “at pace” and there will be “inevitably” be some impact on jobs, Phil Bentley chief executive told the Press Association.

Mitie’s engineering service business employs around 8,400 workers and is undergoing the second leg of the revamp.

Over the next two years there will be changes as the firm increases the use of technology, delivering cost savings and improving engineer productivity.

The move is to cost £30m and will deliver annual run-rate benefits of around £30m by March 2021, on top of the £45m per year cost savings they company made under the first stage of restructure.

Bentley stressed they are not focussing on axing jobs but, “Inevitably there will be some impact somewhere.”

He said, “That’s the reality. But that’s not the main story.

“Does it mean fewer jobs or does it mean we are more productive and win more business? I’d like to think the latter.”

Mitie posted a better than expected 6% rise in annual underlying earnings to £88.2m in the year to 31 March.

Mitie’s order book was steady at £4.1bn and the firm’s pipeline of work rose to £10.2bn, whilst revenues were up by 9.4% to £2.2bn and forecast earnings are to grow at “mid-single digits” for the next financial year.

Bentley said, “Mitie’s transformation continues at pace.

“Change has been challenging at times, but our progress and performance to date are encouraging.”

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