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Mitie may cut 480 jobs as clean up continues

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Mitie may cut 480 jobs as clean up continues

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(Reuters) – British outsourcing company Mitie Group <MTO.L> said it may cut up to 480 jobs after restructuring its cleaning and engineering divisions as it continues with its turnaround drive. The provider of pest control, cleaning, security and healthcare services has reviewed its strategy and accounts after three profit warnings in a year, blaming uncertainty surrounding Brexit and rising costs. It said revenue so far this year was ahead of its expectations, and is seen at about 1.1 billion pounds for the first-half of the year, 4 percent ahead of the prior full-year period. The company added that this trend should continue. Mitie is in the midst of a recovery drive, and has restated its accounts, announced it would appoint a new auditor and sold a loss-making unit. “Transforming a large, diverse business such as Mitie is neither linear nor without challenges, but the programme remains on track. I expect to see the positive impact of our endeavours as we move into the second half of the year,” acting Chief Executive Peter Dickinson said in a statement. Mitie is the UK’s largest facilities management company, employing some 53,000 people across the country. British outsourcing companies such as Mitie, Capita <CPI.L> and Carillion <CLLN.L> have been hit over the past year by rising labour costs and unplanned changes on contracts that were taken on during the financial downturn, often with paper-thin margins.

(Reporting by Justin George Varghese in Bengaluru, editing by Louise Heavens)
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