The review of the business unit, which consists mostly of vans and handlers that transport cash to various firms around the economy, is thought to have followed pressure on the division amid rising use of cashless payment technology.
The difficulties have also been exacerbated by the coronavirus pandemic, which has not only seen consumers spend less in physical shops during lockdown but also an active discouragement of physical payment methods such as cash to reduce the spread of the disease.
"Following a review of our cash solutions operational footprint in the UK, we are proposing to reshape the business to better align it with the changing needs of our customers”, said Paul van der Knaap, the managing director of G4S Cash Solutions UK.
“Regrettably this will result in a reduction in headcount, and today we have entered into a period of consultation with affected staff", he added.
G4S’s move has been criticised by the GMB trade union, which said the cuts will be “devastating” for its members employed by the company and leave the cash industry “on a knife edge”.
GMB national officer Roger Jenkins also said the cuts were “another worrying step towards a cashless society”, which he said “could have a terrible impact on the elderly and most vulnerable and wreak havoc on small and medium enterprises which rely on cash transactions”.
Results brought forward
The job cuts announcement followed more positive news on Monday morning when the company said it has brought forward the reporting date of its first half results to the week of July 20 from August 12, saying a “resilient trading performance” meant it now expected profits for the period to be ahead of forecasts.
In a brief update, the firm said consensus analyst forecasts for its six months ended June 30, 2020, are for an adjusted profit (PBITA) of £159mln and earnings per share of 4.3p from continuing businesses, but as a result of the solid trading its results were now expected to be “significantly above” the consensus figure.
G4S shares were up 9.2% at 130.5p in mid-afternoon trading.
--Adds job cuts report and updates share price--