Kier cuts 375 jobs to add to the housebuilding misery

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Kier said it is laying off 60% of the 625 workers in its residential construction business as it sees no let-up in the housing recession for the next 18 months.

The group, which has several trading names including Bellwinch Homes, is closing offices at Borehamwood, St Neots and Spalding as well as its presence in Glasgow.

Kier's completions have tumbled by around a fifth to 1438 in the past 12 months, but the picture has worsened markedly in recent weeks. The company said: "The housing market continues to be tough. Visitor levels and reservations continued to fall during the [last six months] and at 30 June 2008 our order book of exchanged contracts and reservations was around 45% less than at 30 June 2007.

"We are very cautious on the outlook for 2009 and consequently we are taking appropriate action to reduce our cost base."

Kier's job cuts continue a horrendous month of news in the industry.

In recent weeks, Persimmon has cut 1100, Barratt Developments 1000, Taylor Wimpey 900, Bovis Homes 400, Bellway 370, Redrow 350 and Galliford Try 265.

Kier shares were steady today at 9101/2p as the company said the poor housing outlook was offset by the continued strength of construction and building maintenance contracts in the public sector.

"These mixed market experiences reinforce the benefit of having a range of businesses operating in different sectors of the market," the company said.