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Builder to axe 100 jobs due to crunch
RETIREMENT home builder McCarthy & Stone is to shed over 100 jobs, some of which will be at its Homelife House headquarters in Bournemouth.
The company, which employs 1,170 staff across the UK, is restructuring its business to counter the effects of the credit crunch, which is hitting house builders across the country.
About one quarter of its staff are based in Bournemouth.
Mike Jennings, operations director, said: "Each of McCarthy & Stone's nine operating regions is an individual business and will be assessed by its own trading conditions and geographical coverage.
"Some will be affected more than others. Overall, across the group nationally, we anticipate losing less than 10 per cent of the total staff.
"The effect will be relatively small at Homelife House, the company's Bournemouth headquarters.
"None of the regional offices will be closing but some of their functions will be dispersed among other regions."
The Echo reported on Monday that the house builder has delayed build starts on new sites programmed for the next few months.
However, projects already under construction will remain on schedule.
The company is combining its northern operating regions and its western region will be shared between the South West and Midlands offices while the Assisted Living division - provider of Extra Care schemes for the frail elderly - will be devolved to the regions.
Chief executive of McCarthy & Stone Howard Phillips said: "Even a well-placed company like ours is not immune from current economic pressures.
"The restructuring is entirely a result of the credit crisis and we hope to be back on track with our expansion programme as soon as the economy allows."
He added: "I very much regret the implications for some of our colleagues as redundancies will occur.
"Our investors remain supportive and committed to McCarthy & Stone, as well as the housing sector, for the longer term."
Chris Brady, dean of the business school at Bournemouth University, commented: "Such redundancies could affect our area a lot.
"Analysts have projected house price drops with the worst scenario being a 20 per cent reduction.
"In such situations companies like McCarthy & Stone stop building houses and house prices go up. It's a vicious circle.
"The UK has always had high house prices because there is no land. But it will pick up again. In the next 18 months it should stabilise and the market will be reinvigorated.
"It's all to do with confidence and there's a disproportionate knock in confidence.
"When we look at the figures we shouldn't be as unconfident as we are but the fact remains that we are overly reliant on house ownership - unlike the French and Spanish, who rent."
7:00pm Wednesday 7th May 2008
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