Bovis Lend Lease employees are preparing for redundancies after the firm announced a major restructuring this week to take it through the "desert" of the recession.
In a letter to staff, seen by CJ, Bovis Lend Lease (BLL) chief executive Nick Pollard outlined a strategy to cut costs and increase profits. The restructuring will see existing divisions streamlined, BLL's procurment processes improved and new markets targeted in the industrial, technology and waste sectors.
Pollard said "tough decisions" had been made in order to increase BLL's efficiency and competitiveness "as quickly as possible."
Under the restructuring Nick Saclley, as head of Lend Lease Project Management (LLPM), will spearhead a campaign to improve the firm's bidding rates, with particular focus on PFI. Saclley will also develop "closer partnership" with Catalyst Lend Lease, Vita Lend Lease, and Lend Lease Retail and Communities.ADVERTISEMENT
Peter Varga, operations head at BLL will head up procurement and planning as part of the same move to improve the firm's bidding hit rate.
Meanwhile Paul Johnson, the chief commercial officer, who is leaving this month to join Apollo, will not be replaced. His role will be divided between the chief financial officer and various BLL directors.
A new division known as BLL Consulting, headed by David Sutton, will be created from a merger of the consulting, engineering and project management units from BLL's technology division and Lend Lease Projects. As part of the merger the Elstead office will be closed in August and staff relocated to Harrow. BLL Consulting will target the waste, technology and industrial sectors.
However redundancies are expected. Pollard said: "I realise that this announcement may create some uncertainty for those most directly involved, and I have committed that we will manage those circumstances in an open, fair and timely manner."
Pollard told staff the restructuring would help take the firm "through the вЂњdesertвЂќ of the economic recession" as well as putting the business "ahead of the UK economic recovery."