Marshalls PLC (LON:MSLH) may cut up to 400 jobs permanently as part of a restructuring after sales of its paving slabs fell 27% in the first four months of the year due to the coronavirus crisis.
The proposed closure of certain sites, changes in shift patterns and proposed changes to the size of and structure of support functions require around 15% less of the total workforce, it said.
Directors have agreed a 20% reduction in remuneration, with a 15% cut for senior managers and government tax and furlough schemes also being used.
“We are reopening our plants as demand returns,” the FTSE 250 group said in a statement ahead of its annual meeting. “The nature of the concrete manufacturing process means our facilities have low re-start time and cost requirements.
“This flexibility and our improved efficiency means that capacity will not be materially reduced by the proposed changes and we will continue to satisfy our customers' requirements.”
Sales saw a steep drop in the last week of March and throughout April, Marshalls said, though things have progressively improved in May to a current level around 50% of daily revenues seen this time last year.
As flagged last month, agreements have been signed with three banks for a combined £90mln 12-month revolving credit facility, with a 12-month extension option, giving the group total bank facilities of £255mln.
“The combined effect of the cost reductions, the restructuring programme and the new bank facilities will leave the group stronger and well placed to meet the current challenges and also well positioned for eventual future opportunities,” the statement said.
Shares in the company were down 2% to 608p in early trading on Wednesday.