This brings the total number of intended job cuts to 7,300
LONDON - WOLSELEY, the world's biggest distributor of plumbing and heating products, said on Tuesday it planned to cut more than 2,300 jobs, mainly in Britain but also in the Nordic region, as its profits slump.
Wolseley had already axed 5,000 jobs, mainly in the United States, during the three months to October 31, the group's first quarter.
'Given the growing impact of the recent turmoil in the financial markets on the broader world economy and the construction industry, the group expects the markets in which it operates to continue to deteriorate', the British company said in a trading update.
It added: 'For the three months ended 31 October 2008, the group's results continued to be affected by the unprecedented events in the financial markets and their wide ranging impact on the housing market and consumer sentiment'.
'Actions initiated in (the) first quarter have resulted in combined exceptional restructuring charges of 163 million pounds (S$374 million), annualised savings of 134 million pounds and headcount reductions of around 5,000.
'Further actions announced today will incur exceptional restructuring charges of 45 million pounds, generate annual savings of 103 million pounds and headcount reductions of over 2,300, the majority of which are in the UK', it added.
Wolseley said that underlying pre-tax profits were down between 45 and 50 per cent in the first quarter.
'While these results reflect a further deterioration in the business environment in the first quarter it was not unexpected, and, we continue to react swiftly to market conditions with aggressive but measured cost reduction', Wolseley chief executive Chip Hornsby said in the trading statement.
'In these unprecedented circumstances, the key priorities remain driving cost reduction and enhancing cash flow'. -- AFP
