Struggling MITIE PLC ( LON:MTO) is to cut 480 jobs as it announced more bad news after last year’s string of profit warnings.
The troubled outsourcer said restructuring of its engineering and cleaning divisions and the automation of its HR function will result in 480 jobs going by the end of the year.
A group-wide savings programme called project Helix is also proven costlier than expected, with implementation this year now forecast to cost £24mln against a previous estimate of £15mln.
Mitie also warned it has lost one of its top 20 contracts even though it was not due for retendering until 2019. This will result in a £6mln write-off, though the company will get a £2mln a termination payment.
Its property management business is being put up for sale as a result of a strategic review.
READ: Mitie Group sells social care business for £2 in wake of profit warning
MITIE has been under the cosh for a year following the trading woes that saw the departure of chief executive Ruby McGregor-Smith.
Former British Gas boss Phil Bentley took over last October but stood down temporarily earlier this month due to ill health.
Peter Dickinson is currently acting chief executive and said progress has been made with MITIE's turnaround.
Top line growth or sales had been encouraging, he added, with revenue year-to-date at £1.1bn or 4% ahead of the comparable period.
Shares today fell 3.7% to 250p.