Builder's merchant Wolseley plc (LON:WOS) is cutting up to 800 jobs and closing 80 branches in the UK to save up to £30mln a year.
Wolseley is also shutting a distribution centre as part of the cuts, which it blamed on a decline in its core repair, maintenance and improvement markets.
The company reported UK trading profit of £74mln, down £16mln from last year, as the UK heating market stayed flat and competition remained tough.
It expects the restructuring to cost about £100mln of which £70mln is cash and will be fully funded by working capital efficiencies and disposal proceeds.
The group also expects to invest an incremental £40mln over three years in refurbishment, technology and accelerating digital investment.
But a relatively good US housing and commercial markets helped Wolseley to report record group annual trading profit of £917mln, up 1.6% at constant exchange rates, on a 4.2% rise in revenue to £14.4bn.
Pre-tax profits climbed to £727mln from £508mln and the company boosted its dividend by 10.2% to 100p.
Chief executive John Martin said: "Ferguson, our core US business which generates over 80% of the group's trading profit, performed well and achieved good growth in residential and commercial markets, partly offset by weakness in industrial markets.
"Commodity deflation, principally in the US, reduced the group's growth rate by 1.5%. Ferguson continues to be the main priority for organic expansion and bolt-on acquisitions."