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Skanska to shift focus towards UK business
Swedish construction and project development company Skanska announced on Wednesday that it planned to shift its focus towards its business in the UK, laying off 3,000 of its employees across the globe as part of an effort to improve profitability following a strategic review initiated in 2017.
Declining revenues in several construction units led Skanska to undertake a review of its construction operations in Poland, as well as its decision to leave the power sector in North America and shift its focus towards its core business in the UK, as well as learning to adapt to tougher market conditions in the Czech Republic.
Skanska's restructuring programme cost the group SEK 1.1bn in the fourth quarter of its trading year ended 31 December and was projected to cost a further SEK 600m in 2018.
The group was expecting full-year income from the 2017 trading year to be in the vicinity of around SEK 5.3bn and noted that its Scandinavian construction units continued to deliver strong results.
Skanska planned to reduce the size of its unprofitable business units and shifting its focus towards cost control and risk management, meaning a number of organisational and leadership changes.
A review of group governance aimed at reducing costs and increasing organisational effectiveness was slated to continue throughout the year, with the SEK 600m of charges stemming from the layoffs of about 3,000 of its employees which Skanska estimated would save it nearly SEK 1bn annually.